Jitasa’s Post

View organization page for Jitasa, graphic

9,423 followers

🔍 Nonprofit leaders, do you know what 'Restricted Funds' are? These are donations designated by donors for specific purposes, like a particular project or program. These funds must be used strictly according to the donor's instructions, ensuring their intentions are honored. Properly managing restricted funds not only maintains donor trust but also enhances the impact of your mission by channeling resources exactly where they are needed. Example: Imagine a nonprofit organization called "Green Earth," which focuses on environmental conservation. Green Earth receives a donation of $50,000 from a local foundation, but the foundation specifies that this money must be used exclusively for planting trees in urban areas. This $50,000 is considered restricted funds because it can only be used for the tree-planting project and not for any other expenses like office supplies, salaries, or other conservation projects. Green Earth must track this donation separately in their accounting records and report back to the foundation on how the funds were spent to ensure compliance with the donor's restrictions. 👉 Follow us for more nonprofit tips and insights. #NonprofitTips #NonprofitLeaders #Charity #NonprofitManagement

To view or add a comment, sign in

Explore topics