Definition of Funding

Process of financing capital expenditures by issuing long term debt obligations or by converting short term obligations into long term obligations to finance current expenses. Allocation of money to investments or other type of reserve fund to meet future expenses for pension, welfare, or other benefits. ERISA specifies the requirements for funding of qualified retirement plans. See also Fund; Funded.

That's the definition of Funding in Black's Law Dictionary 6th Edition. Courtesy of