Restricted Funds

Restricted funds are donations or resources given to an organization with specific conditions on how they can be used. For example, a donor might contribute money designated only for a particular project or program, rather than for general operating expenses. These funds ensure that the money is spent only for the intended purpose, which can help organizations meet particular goals or support specific initiatives. Managing restricted funds properly is crucial for transparency and accountability, as organizations must follow the donors' guidelines while also reporting on the use of these funds.