It’s a spectrum of how discrete the pieces of funding are:
Contracts have more or less fuzzy deliverables. You need to do some sort of sales to get a contract. Contracts have more or less fuzzy deliverables. Grants are a form of contract funding with fuzzy deliverables.
Products are something where you build the thing and then people pay you for them. In a way, prizes are a form of ‘product funding.’
The line between contract and product is not always well-delineated.
Budgets you just get money from someone else that you’re in a relationship with. Everything is implicit. Budgets for organizations are analogous to salaries for people. Budgets are fragile - if you have a budget you have a steady source of income … until you don’t. Organizations with budgets can be defunded at any time. They generally don’t have any buffer.
At the end of the day the knobs that get turned are
All the possibilities