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1.
Racism: Hating people because of a genetic feature that they have, such as race.
As time progresses most people tend to hate people who claim to be racists and and its slowly becoming less socially acceptable to be that way. (thankfully)

Prejudice: Hating people based on genetic features that they have, such as, homosexuality, schizophrenia, being bipolar, being short, being tall, freckles, hair color, gender, age, being ugly, having physical disabilities, being overweight, having mental disabilities, being autistic, having down syndrome, having learning problems, being mentally ill, having any physical abnormality. These types of prejudice are usually entirely socially acceptable and pretty much encouraged.
Racism vs Prejudice
Prejudice...
Person1: I've only known that person for 30 seconds, but I hate them.
Person 2: Why, did they do something wrong?
Person 1: No, they don't have to do anything wrong, I just hate them.

Racism:
KKK: We hate blacks....
Black Panthers: We hate whites...
Third party bystander: Wow, the seem like different sides of the same coin. The should have lunch together.
by a person111 September 30, 2014
 
2.
Prejudice is to be human. Every one of us judges others on first contact. Usually through the filter of our own life experiences. Racism is a deep seeded superiority complex based purely on race. It usually requires joining a racism club and buying silly looking costumes. IE: KKK/Neo Nazis, Black Panthers/Nation of islam, Mecha/La Raza, etc,etc,etc.
Redneck like me #1:Steve crossed the "Racism vs. Prejudice" line the other day!

Redneck like me #2: Wad the dumbfuck do?

Redneck like me #1: He went and joined the KKK. What's he so proud of? His shitty trailer, or the fact that he married his first cousin?

Redneck like me #2: I dunno man, niggers irritate me too, but I'm not wearing that stupid looking bullshit!
by Whiskey Tengo Foxtrot August 29, 2011