Restricted Funds

Specific financial resources set aside for a designated purpose or project, with limitations on their use as determined by donors, grantors, or governing entities.

 

Donor-Restricted Funds:

Funds received from donors with explicit instructions on how the money should be used, often tied to a particular project, initiative, or timeframe.

 

Grant-Restricted Funds:

Funds provided through grants that come with specific conditions or restrictions on their use, aligning with the objectives outlined in the grant agreement.

 

Purpose-Restricted Funds:

Funds earmarked for a particular purpose, such as research, capital projects, or community programs, limiting their utilization for other organizational needs.

 

Time-Restricted Funds:

Funds with constraints on the time period during which they can be expended, typically associated with projects or initiatives that must be completed within a specified timeframe.

 

Endowment Funds:

Funds invested to generate income, with the principal amount remaining intact, often restricted for long-term use, such as supporting scholarships, research, or specific programs.

 

Capital Campaign Funds:

Funds raised for a specific capital project, such as constructing a building or renovating facilities, with restrictions on their use for these defined purposes.

 

Project-Specific Funds:

Funds allocated to a particular project or initiative, ensuring that financial resources are dedicated exclusively to the successful completion of that project.

Legal Restrictions:

Restrictions imposed by laws, regulations, or contractual agreements that dictate how funds can be used, ensuring compliance with legal requirements.

 

Designated Funds:

Funds set aside for a specific purpose by the organization itself, rather than external restrictions, allowing for internal allocation based on organizational priorities.

 

Operating Reserves:

Funds held in reserve to cover unforeseen expenses or operational challenges, providing financial stability without restrictive conditions on their use.

 

Matching Funds:

Funds provided on the condition that they are matched by an equivalent amount from other sources, often used to leverage additional support for a specific project.