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Restricted vs. Unrestricted Funds

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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.

Related:

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