Finance
Designated funds
Formal definition
Designated funds are unrestricted funds that trustees have set aside for a specific future purpose through an internal decision.
What this actually means for you
The money is earmarked but can still be undesignated by trustees if circumstances change. In practice, this is how designated funds should be applied in your charity.
Example: Trustees designate £120k for CRM replacement over two years, then release part of it if urgent safeguarding work needs funding first. This example shows designated funds in day-to-day use.
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