Understanding Restricted vs. Unrestricted Funds for Nonprofits

In this episode, Tricia Katebini and Yevgeniy Sukhenko discuss the topic of restricted revenue. Restricted revenue refers to funds donated to an organization with specific limitations imposed by the donor on how or when the money can be used. These restrictions can be temporary, such as funds designated for a particular project or time period, or permanent, like endowments where only the investment income can be utilized. Proper management and accounting of restricted funds are crucial for nonprofits to ensure compliance with donor intentions and legal obligations.