Thought Leadership

Distributing restricted funds

Many nonprofits are trying to figure out which programs they can continue and how they will make up for lost revenue. So this may be the time to look at restricted funding for some of your key programs. It is ok to reach out to funders (whether private or government) to ask if they would allow the restricted grant to be allocated differently. Whether or not it will be approved depends on the donor and their relationship to the organization.

Before making the request, you and the Board should prepare for those discussions together by identifying the organization’s critical financial needs and articulating how moving these restricted funds will help you meet your core purpose. Discussions on what is really needed and what programs are important need to take place.

Santushi Kuruppu, October 2020