What does $\sum_{k=0}^m{n \choose k} {n-k \choose m-k}$ mean?
Let's say we have $n$ balls, which are either black or white. We choose $k$ out of $n$ balls to be black, which means that out of the remaining $n-k$ balls, we choose $m-k$ to be white. Summing over this gives us the number of ways to choose either black or white balls from $n$. However, I am not sure why the sum goes all the way to $m$ and how that relates.
The formula gives you the number of ways to choose either black or white balls from $n$, but so that the total number of black or white balls is not larger than $m$ (i.e. $n-m$ balls are left unchosen).