Legal Definitions - fully funded

Fully funded describes a financial situation where either:

1. Sufficient financial resources have been secured and set aside to meet a future obligation, even if unexpected financial difficulties arise.
2. The entire amount of money required for a specific project, agreement, or financial commitment has been completely provided or paid.

• Example 1: Charitable Endowment

  A university announces that its new scholarship endowment for underprivileged students is "fully funded." This means the university has successfully raised and invested enough capital so that the annual investment returns alone will perpetually cover the scholarship awards, without needing to touch the principal. Even if the university faces a period of financial hardship or declining donations, the scholarship fund has sufficient resources to continue providing its intended support indefinitely.

• Example 2: Crowdfunding Campaign

  A small business launches a crowdfunding campaign to develop an innovative new kitchen gadget. After several weeks, the campaign creator posts an update stating, "Our project is now fully funded!" This signifies that they have successfully reached or exceeded their target fundraising goal, meaning the entire amount of money required to manufacture and launch the new product has been secured from backers. All funding requirements for the project's initial phase have been completely satisfied.

• Example 3: Real Estate Purchase

  A couple is purchasing their first home and has secured a mortgage. On the day of closing, their attorney confirms that the purchase is "fully funded." This indicates that all necessary financial components—the down payment, the mortgage loan amount, and any closing costs—have been completely provided and disbursed. The entire financial requirement for the property acquisition has been met, allowing the transfer of ownership to proceed.