Types of Giving

From 24-7Wiki

The following classes of giving are monitored in our accounts

Unrestricted Donations

These donations are granted by the donor with no restriction on their expenditure - they can be spent on anything within the charities objects.

Restricted Donations

The donor stipulates how the money is to be used. The charity is under obligation to spend the funds on what the donor has given them for.

A proportion of the fund may be spent on support costs, but only on items associated with the donors original stipulation. For example, a donor gives money for a mission team to Ibiza. Administration or staff costs associated with the organisation of the mission team may be drawn from the restricted donation. Other more general staff or administration costs however, may not draw on this fund.

Designated Donations

The charity may on occasion choose to designate unrestricted giving for a particular purpose, but this is purely for fund management purposes. This fund would then typically be spent on the purpose it was designated for, but it could also be shifted to another area of expenditure if the charity saw fit to do so.

For example, £2,000 is set aside by the charities executive team for European Development Projects. After £1,500 has been spent, the executive decide that is a higher priority to spend the remainder of the fund on a disaster relief project.