Providing resources either in the form of money, time, or in other values to a person, for a project or for a business is referred to as funding. Fundraising is usually attempted when a request for funding has been posed. There are both long term and short term purposes which needs funds. For funding private health care center health fund has been generated.
There are various sources of funding of which the main sources of funding are donations, grants, credit, taxes, savings, and subsidies. There are also various types of funding like crowd funding, mass funding, research funding, peer-peer lending and so on.
The trust that allows a party to give a resource to another party where the other party doesn’t repay immediately but arranges some other materials or pays back the resources at a later date is referred to as credit. Usually the resources that are provided are financial resources or services and goods. All form of deferred payment is referred to as credit. Creditor is the one who extends the credit. The other name for creditor is lender and that of debtor is borrower.
A gift that is given for charitable purposes or for the benefit of the other person is referred to as donation. There are various forms of donation which includes cash, services and other categories like food, toys, clothing and vehicles. The development aid support, the humanitarian items, and also the medical care related needs like the blood donations or organs transplantation purposes are some elements of donations. The charitable goods and services are also referred to as gifts in kind. A main aspect of donation is that donations are given without any return consideration.
Funding that are disbursed by a government department, foundation, corporation or a trust to the recipient like an educational institution, business, nonprofit entity or even an individual is referred to as grants. Often a proposal or an application is required in order to receive the grants. This proposal is referred to as grant writing. In most cases specific projects are supported with grants which also need some level of reporting or compliance.
The method of reducing the expenditures and then recurring costs is referred to as saving. Saving in simple terms is the deferred consumption and the income that is not spent.
The form of funding that is provided to an economic sector or to a business is referred to as subsidy. In order to provide the decline of an industry subsidy is provided.