A slush fund can also be a reserve account used to reduce fluctuations in an organization's earnings by withholding them when they are high and supplementing them when they are low.
This type of slush fund is not inherently corrupt, but is nonetheless a form of earnings management that tends to mislead stakeholders about the organization's financial condition.
[3] Richard Nixon's "Checkers speech" of 1952 was a somewhat successful effort to dispel a scandal concerning a slush fund of campaign contributions.
[4] Years later, Nixon's presidential re-election campaign used slush funds to buy the silence of the "White House Plumbers".
[5] Financial derivative traders for Enron employed a slush fund system called "prudency reserves," in which the department reported part of each trade's profit or loss to the company and withheld the remainder.