A “Donor” provides a significant amount to the “Charitable Organization” or a “Non-Profit Organization” and the money can be utilized without any restrictions or terms by the organization who is receiving it.

For instance, on the provision of “Funds” of Unrestricted Kind by a person, it will be truly dependent on the authorities of the “Non-Profit Organization” to assign the use of the donated amounts in order to assist diminishing or balancing the effect of (offsetting) “Operating Expenses” of the organization including “Utility Bills”, “Rent” and “Labor Expenses”.

• The Funds are also referred to as “CURRENT UNRESTRICTED FUNDS”.
• There will be no constraints associated with the resources of such kind of “Funds” and the “Charitable Organization” will be free in allocating the amounts of the Fund, similar to the act of choosing the aims and the targets for which the organization is operating.
• The “Funds” will be utilized and invested for the specific purposes that a “Non-Profit Organization” will choose or decide OR they will be submitted to a “RESTRICTED FUND” which is not possessing the sufficient monies for its “Expense Coverage”.
• All sum of monies that can be categorized as “Unrestricted Contributions” including any kind of Gifts or other monetary amounts must be recorded and filed in these kinds of “Funds” whilst conducting the “Unrestricted Fund Analysis”.
• On the Discretion of the “Members of the Governing Board”, the income of such kind of Funds (Unrestricted Funds) will be expandable in the advancement of a scheme related to the objectives of “Charity”.
• There will be a “Compromisation” related to the “Unrestricted Funds when the “Unrestricted Fund Analysis” will be conducted. These include two types of “Funds” that are;

1. GENERAL FUNDS.
2. DESIGNATED FUNDS.

GENERAL FUNDS:

• The “GENERAL FUNDS” fall under the category of “Unrestricted Funds” which will not be designated for a particular purpose (not earmarked) and will be probably rendered to proceed with the work of “Charity”.
• On the assessment of a set or group of Accounts related to Charity by the firms working for the “Charity” purposes, the information regarding the Charity Accounts will be manifested in a format or fashion of a column in the “Statement” related to the “Pecuniary Activities” depicting the “Expenses” as well as “Income” pertaining to every single Fund while the “Loss and Profit Account” will be replaced in these cases.

DESIGNATED FUNDS:

• The “DESIGNATED FUNDS” fall under the class of “Unrestricted Funds” that will be designated (earmarked) by the “TRUSTEES” for a specific purpose.
• The “Purpose” and the “Aim” of “Designated Funds” must be expressed or manifested in the “Account Notes”.
• The “Endowment” of the “Designated Funds” perpetually in accordance with the utilized “Income” for the sake of supporting the “organization”.
• On the Discretion of the “Members of the Governing Board” whilst executing the “Unrestricted Fund Analysis”, the income of “Unrestricted Funds” will be expandable in the advancement of a scheme related to the working targets related to “Charity”.
• The branch of the “Reporting Charity” that functions for the “Charitable Purposes” of general kind, will be responsible for the “Fund Raising” and this entire process will be accountable in the same manner as “Unrestricted Funds” will be presented in the “Financial Statements” related to “Reporting Charity”.
• The Expenses covered from the “Restricted Funds” will be supplemented by utilization of “Unrestricted Funds”.