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Simple English definitions for legal terms
funding
Read a random definition: interpretive rule
A quick definition of funding:
Definition: Funding is the process of getting money to pay for things. This can be done by borrowing money for a long time or by using money that has been saved up. It can also mean giving money to a specific project or putting money into a special account for a certain purpose, like retirement or research.
A more thorough explanation:
Definition: Funding refers to the process of obtaining financial resources to finance a specific activity or project. This can be done by issuing long-term debt obligations or by converting short-term obligations into long-term obligations to finance current expenses. It can also refer to the provision or allocation of money for a specific purpose, such as for a pension plan, by putting the money into a reserve fund or investments.
Examples:
- A company may seek funding from investors to finance the development of a new product.
- A government may provide funding for a research study on climate change.
- An individual may set up a pension plan and allocate funds to it regularly to ensure financial security in retirement.
These examples illustrate how funding can be used to obtain financial resources for different purposes, such as business development, research, and personal financial planning.