Restricted vs. Unrestricted Funding

Restricted funding is designated for a specific purpose or project, meaning the recipient must use it only for that intended goal, as outlined by the donor or need. Unrestricted funding, on the other hand, provides flexible resources that the recipient can allocate as needed across various programs or expenses. Essentially, restricted funds have clear limits on their use, while unrestricted funds offer more operational flexibility. Both types are essential for strategic planning and effective resource management within an organization.