Restricted gifts generally require a higher level of care from not-for-profits that receive them. If you fail to use a restricted donation as intended, the donor could ask for it back, leading to litigation and bad publicity. Your staffers must understand how to handle restricted gift paperwork and channel it to the proper people. You also need to record associated expenditures in a simple spreadsheet or track restricted contributions as individual funds in the general ledger. To minimize the risk of errors, implement a process for regular review and be sure to monitor outcomes. Contact us with questions.
