What Are Restricted Funds? скачать в хорошем качестве

What Are Restricted Funds?

Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is “Restricted Funds” These are funds used by an organization that are restricted or earmarked by a donor for a specific purpose, which can be extremely specific or quite broad, such as endowment or pensions investment; research in the case of donations to a charity or research organization; or a particular project with agreed terms of reference and outputs such as to meet the criteria or terms of the donation or award or grant. The source of restricted funds can be from government, foundations and trusts, grant-awarding bodies, philanthropic organizations, private donations, bequests from wills, etc. The practical implication is that restricted funds are ring-fenced and must not be used for any other than their designated purpose, which may also entail specific reporting and timescales, with which the organization using the funds must comply. By Barry Norman, Investors Trading Academy