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Restricted vs. Unrestricted Funds


College Bound 20th Anniversary Celebration
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Definition: Donors to a nonprofit organization may designate or "restrict" the use of their donations to a particular purpose or project. An example is a gift to a particular scholarship fund at a university.

"Unrestricted" funds are donations that are available for the nonprofit to use toward any purpose. Unrestricted funds usually go toward the operating expenses of the organization.


The philanthropist's gift is restricted to the building fund.
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