Final answer:
Informal funds, specifically known as 'soft money' in campaign finance, refer to donations not regulated by the FEC and can be used to circumvent regulatory limits indirectly. Understanding local informal systems of rights is also important for conservation organizations working with communities.
Step-by-step explanation:
Whether informal funds are authorized depends on the context in which they are being used. In terms of campaign finance, there is a distinction between 'soft money' and regulated funding. Soft money refers to donations that are not regulated by the Federal Election Commission (FEC) because they cannot be used to support an individual campaign or advocate the election of a particular candidate. This type of funding raised concerns about its potential to circumvent campaign finance laws, as seen in historical examples where political organizations and campaigns have utilized loopholes to indirectly influence elections through soft money.
Furthermore, informal systems of rights, which can include the distribution of rights to resources within a community, are often based on local customs and governance structures. These systems may operate alongside formal laws, but do not necessarily have the same legal recognition or oversight. Conservation organizations, when engaging with communities, need to understand both formal and informal systems of rights to effectively work in those contexts.