Finance
Unrestricted funds
Formal definition
Unrestricted funds are charity resources that trustees may spend on any activity that supports the charitys objects.
What this actually means for you
Unrestricted income gives leadership room to cover core costs, pilots, and gaps between grant payments. In practice, this is how unrestricted funds should be applied in your charity.
Example: Unrestricted regular-giving income is used to pay rent, software, and shared staffing when restricted grants do not cover those costs. This example shows unrestricted funds in day-to-day use.
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