Donor Restrictions

Donor restrictions refer to specific limitations or conditions that donors place on their contributions to a nonprofit organization. When donating, a donor may specify how their funds should be used, such as for a particular program, project, or purpose. These restrictions ensure that the money aligns with the donor's intentions. For example, a donor may give money specifically for educational materials, but not for administrative costs. Nonprofits must account for these restrictions carefully to ensure compliance and maintain the trust and support of their donors.