Finance
Restricted funds
Formal definition
Restricted funds are donations or grants that legally must be spent only on the purpose specified by the donor or funder.
What this actually means for you
You cannot move this money to cover general overheads unless the funding terms explicitly allow it. In practice, this is how restricted funds should be applied in your charity.
Example: If a grant is restricted to youth mentoring, you can claim mentor salaries and approved programme costs, but not unrestricted head-office spend. This example shows restricted funds in day-to-day use.
Related guides and whitepapers
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