Funnel cloud = A condensation funnel extending from the base of a towering cumulus or Cb, associated with a rotating column of air that is not in contact with the ground (and hence different from a tornado). A condensation funnel is a tornado, not a funnel cloud, if either a) it is in contact with the ground or B) a debris cloud or dust whirl is visible beneath it.
Tornado = A violently rotating column of air in contact with the ground and extending from the base of a thunderstorm. A condensation funnel does not need to reach to the ground for a tornado to be present; a debris cloud beneath a thunderstorm is all that is needed to confirm the presence of a tornado, even in the total absence of a condensation funnel.
I agree with the above statement, but when one sees a condensation funnel reaching part way to the ground, how does one now if it is a funnel cloud or a tornado?...how does one know if it is in contact with the ground? About damage....what if there is nothing to damage. There will be cases where it is not possible to determine whether the vortex associated with a partly condensed condensation funnel reaches the ground or not.
The operational definitions of tornadoes vs. funnel clouds are all well and good, but often it will be visually impossible to distinguish between the two until after the fact if at all. Dust whirls? Helpful, but don't count on that clue if the ground is wet and vegetation covered. Damage? Very helpful, but if no trees or buildings are in the path, it may never be possible to determine if a vortex was on the ground.
It is also important that the public not think that a tornado is not dangerous because it only condenses part way to the ground.