Restricted Funds: Unlocking Value For More Effective Use

A charity may find itself managing a growing number of restricted funds, particularly where it has a long history, receives legacies for specific purposes or regularly fundraises for restricted projects.

Over time, those funds can become administratively burdensome and may leave charitable resources underused where their purposes are no longer practical or sufficiently flexible. Fund rationalisation is rarely at the top of the agenda, but it may be worth revisiting. Updated statutory powers available to charities can make the exercise more straightforward than it once was and, where approached carefully, rationalisation can reduce administration and unlock value for more effective use.

Identify what is really restricted