Donations a nonprofit can use for any legitimate purpose, with no donor-imposed limits.
Unrestricted funds are contributions that a donor has not designated for any particular purpose, leaving the organization free to apply them wherever the need is greatest. They are the most flexible and arguably the most valuable kind of revenue a nonprofit can receive.
Unrestricted dollars can cover operating costs, salaries, infrastructure, and the everyday expenses that restricted or program-specific gifts often cannot. Healthy organizations work to grow their share of unrestricted support so they can respond to changing needs and weather lean periods.
The annual fund is typically the main engine of unrestricted giving, which is why broad-based donor acquisition and retention are so strategically important.
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Donations that a donor has designated for a specific purpose or program rather than general use.
A nonprofit's ongoing, year-round effort to raise unrestricted operating support from a broad base of donors.
The percentage of donors from one period who give again in the next, a core measure of fundraising health.
The annual information return most tax-exempt organizations file with the IRS to report finances and operations.
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