What does the term "soft money" refer to in an educational funding context?

In the context of educational funding, "soft money" refers specifically to money that is not guaranteed year after year. This type of funding often comes from grants, donations, or other sources that can fluctuate annually. Since soft money is contingent on external factors, such as donor contributions or grant approvals, it does not provide a consistent source of funding for schools. Understanding this distinction is crucial for educational leaders, as it impacts budgeting and long-term planning.

In contrast, unrestricted funds meant for any purpose are more stable and predictable, which differentiates them from soft money. Additionally, gifts given to the school for educational benefit are often categorized separately and may or may not align with recurring funding needs. Allocated funds for specific purposes are also typically considered hard money, as they come from stable sources and are earmarked for defined initiatives or programs.