Donor Restricted Funds

Donor Restricted Funds are donations given to an organization with specific conditions set by the donor. These conditions might specify a particular purpose, project, or timeframe for how the funds should be used. The organization must use the funds exactly as designated, ensuring that the donor’s intent is honored. If the restrictions cannot be fulfilled, the funds may be returned or used for alternative purposes allowed by the original restriction. These funds are typically kept separate from general operating funds to ensure compliance with the donor’s wishes.