Question

The three major ways of receiving non work-related funds from acquaintances are:

• Gift –

• Bequest –

• Trust –

Explain each.

Answer 1

Funds

Funds generally means money. Any common man would think funds to be simply money. But in financial terms funds are more than money. Funds means any thing either material/non-material; money, security or any thing which can benefit someone's in any way.

Non-Work Related Funds from Acquaintances:

Non work related funds means any help/favour/money or materialistic thing received from acquaintances which is due to personal relationships. Sometimes the value of these funds can not be calculated in the form of money. The base of receiving these funds is personal relationships or may be friendships as well. But it is not necessary the relationship must be formal or informal. There can be any one of them.

1. Gift: It is any materialistic/non materialistic thing received from acquaintances. For example material gifts include monetary things like watches. It depends upon the person to whom the gift is to given as well as the relationship between the receiver and the giver.

2. Bequest: It means any sort of legacy is given to someone. In simple words giving someone one's earned name and fame which is earned in a long span of time. One can also say it as a transfer of goodwill to someone. For example Charlie is working in ABC Company and Charlie is expert in developing new android programs but charlie has to leave that company. So Charlie trains a new person Abby in New program development by giving him his company. Charlie is not only training Abby but also bequesting his talent.

One more example of bequesting can be taken. Suppose Nick transfers his car to his friend john without any money in exchange is also an example of bequest.

3. Trust: The costliest thing/fund is trust. It means giving someone a place to take a decision that can affect one's life and decisions as well. Trust means giving someone a lifelong right. Trust affects one's all decisions like monetary and financial decisions; personal behaviour and relationships. In the financial decisions only trust is the one factor that motivates the lender to lend money; trust motivates the investor to think that the company would help his money grow.

Conclusion

In the answer three non monetary funds have been discussed- Gift, Bequest and Trust. Gift and bequest are materialistic funds but trust is the fund which is related to someone's personal behaviour and the most important factor in financial decisions is trust. Trust is the base of all actions and decisions taken by any person. So it can be concluded that trust is an invisible, intangible and behavioural non monetary fund given to someone.