What is the definition of "soft money" in the context of school funding?

"Soft money" in the context of school funding refers to funding that is not guaranteed year after year and can vary significantly based on various factors such as grants, donations, or state funding fluctuations. This type of funding lacks the stability and predictability of "hard money," which is often tied to consistent sources like property taxes or state allocations that remain constant.

When schools rely on soft money for their budget, they may face challenges in planning long-term initiatives or maintaining essential programs, as these funds may not be available in subsequent years. This characteristic of variability is what differentiates soft money from more stable funding sources, making it important for school leaders to strategically manage their budgets and consider the implications of using such fluctuating funds for their programs and initiatives.