Nonprofit Accounting: Restricted Funds—Not Yours Until You Earn Them

Hey, nonprofit executive. Great news! You just received a $100,000 grant! What do you say to that?

“Start the party! Right?”

Well, actually, no—not unless your budgeted activities agreed to by the funder included having a party on their dime. And the odds of that are about as likely as the odds of you getting another grant if you spend restricted funds inappropriately. In fact, chances are that you and each board member would be responsible for repaying ...

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