What’s the difference between restricted and non-restricted funding?
Restricted funding is donated money that can only be used for specific programs and/or sites. We recently set up a second bank account in Singapore to hold restricted donations. A restricted donation, such as $6000 for one year of our kindergarten program, would be transferred to the restricted account. Every month, 1/12 of the funds ($500) would be transferred to the general funds account. Prior to November 2010, we had kept general and restricted funds together, and tracked the spending of restricted funds for donor reports only. Restricted funding can be useful, but limits our flexibility. If you can, non-restricted funding is more helpful.
Related Questions
- What is the difference between a lawsuit cash advance, legal finance, lawsuit funding, a lawsuit loan and pre-settlement funding?
- What are the funding plans for the difference between funds raised philanthropically and the overall cost of the project?
- What is the difference between media funding with extended terms and media funding with carry forward?
