Have you heard the term “unrestricted funds” before? If you have, you may know that it is money given to nonprofits that can be used without any restrictions for whatever purpose the nonprofit deems fit to meet its mission. Unrestricted funds are a very important source of funding for nonprofits.
The no strings attached element of unrestricted funds gives nonprofits the flexibility they need. This allows nonprofits to use donated money to support their mission in more ways. Grants and other restricted funds, donations that have a contingency that the money be used for a specific purpose, are important. However, they can limit the ways an organization can support its mission.
Every organization has essential costs that must be met. These can be costs related to just running the day-to-day operations. A lot of grant opportunities though do not cover the everyday costs that organizations carry. Without funds to support the necessary infrastructure of a nonprofit organization, things such as staff salaries, office rent, supplies, needed technology, and more may fall short.
The benefits of giving unrestricted funds include stability, longevity, innovation, and retention for the organization. How can an organization be stable without being able to even afford to keep the lights on? Organizations with access to unrestricted funds are able to evolve and better meet the needs of their community as they come. Organizations are also able to better plan long-term. With access to unrestricted funds, nonprofits are able to try new things to meet the needs of their community. They can innovate and expand.
Nonprofit organizations also oftentimes may face a cycle of stress and burnout. Organizations are unable to retain qualified staff without competitive wages, let alone without the funds to pay these wages. Unrestricted funds allow organizations to retain and invest in talent.
These are just a few of the many benefits of unrestricted funds for a nonprofit organization. It boils down to it lets the organization focus on the mission. Your generous giving can make a big difference in the community. Click now to learn more about making a donation to Fairmont Community Development Partnership.