"Too Funky" was Michael's final single for his recording contract with Sony Music before he started legal action to extricate himself from his contract. "Too Funky" had been initially earmarked for a follow-up to the album Listen Without Prejudice Vol. 2 but Michael shelved the idea, instead donating it, along with three other songs, to the project Red Hot + Dance, which raised money for AIDS awareness. Michael subsequently donated the royalties to the same cause. The song didn't appear on any of Michael's studio album, although later it was included on his solo collection Ladies & Gentlemen: The Best of George Michael.