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  6. What is restricted vs unrestricted funds?
  1. Home
  2. Knowledge Base
  3. I'm a charity
  4. Campaigns
  5. What is restricted vs unrestricted funds?
  1. Home
  2. Knowledge Base
  3. I'm a charity
  4. What is restricted vs unrestricted funds?

What is restricted vs unrestricted funds?

When a donor gives money to a charity, they may specify how a gift is to be used:

  • Unrestricted – the donation is made with the understanding that the funds can be used for any purpose that the organisation sees fit.
  • Restricted – the donation is made with the understanding that the funds will be used for a specific, stated purpose.

When you are setting out the aims of your Big Give campaign and how you intend the funds to be used, this becomes the ‘specific, stated purpose’ that donors are donating to. This can become a problem if the campaign does not raise the amount needed, raises too much, or the circumstances change and you cannot use the donations as planned. 

To avoid this situation, you could consider:  

  • Including a secondary purpose in campaign aims
  • Broadening the campaign aims

You can read more about this in the Charity Commission’s guidance Charity fundraising appeals: appeal wording and record keeping

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