A pool of money that is allocated by a business or other entity for a predicted monetary loss.

For instance, stores expect a certain amount of shoplifting to occur each year. A small amount earmarked for the slush fund is then built into the price of all the merchandise. The increase of price due to theft is how stores claim shoplifters hurt other shoppers. Amusingly, the presence of a slush fund is how many justify shoplifting, explaining that it is expected.