If the government doesn’t have the power of taxation, how are its limited functions financed?

They are financed by voluntary means. One proposal that has been discussed is voluntary, nominal fees on business transactions in exchange for legal standing, for example, 0.1% to 1% of the invoice amount. Private donations (without strings attached) also play a significant role. For example, a group of businesses and individuals may pay for the development, manufacturing and upkeep of a fighter jet, submarine, or aircraft carrier, for the salaries of a local police department, or for the construction, rent and maintenance of a courthouse. A third option are lotteries where the government keeps a certain percentage of ticket sales similar to today’s Powerball.

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