Donations can be Restricted or Unrestricted

April 13, 2023

Donations can be Restricted or Unrestricted

Many people get confused when non-profit agencies start talking jargon about their funds. Two common terms used in the non-profit world are “restricted” and “unrestricted.”


According to Foundation Groups website, “Restricted funds are monies set aside for a particular purpose as a result of designated giving. They are permanently restricted to that purpose and cannot be used for other expenses of the nonprofit. By contrast, unrestricted funds may be used for any legal purpose appropriate to the organization.”


So let me break that down for you in the world of United Way of Wayne and Holmes…


We have thousands of donors. Thank you if you are one of them, by the way!


When you donate, you have the option to designate your gift to a particular passion or program. For example, you may want to sponsor a child who is enrolled in Dolly Parton’s Imagination Library. As soon as we receive your donation it is “restricted” and can only be used for that purpose.


A few examples of restricted funds here at United Way of Wayne and Holmes include:

  • Donations for the Severe Weather Shelter.
  • Donations for Youth Development.
  • Donations for Reading Under the Lights. 
  • Donations for another organization.


In the 2022 fundraising campaign donors contributed $322,566.00 in restricted funds. Donations are not the only restricted funds; we also have endowments that have been set up for our organization and the use of those endowment funds also have restrictions on them.


On the other hand, if you donate and do not choose a passion or program your donation is “unrestricted” and will be used for anything – legal thing – that we need to run the organization.


With unrestricted funds we can meet needs in the community as they happen. Unrestricted funds also help us do our job. In 2022, we were able to give away an additional $913,496.00 in unrestricted funds to our partner agencies.


Most organizations prefer unrestricted donations from individuals, as this provides more options to help people and most grants already restrict the organization to a particular purpose.


If you have any questions about restricted vs. unrestricted donations, please feel free to comment or give me a ring at 330-264-5576.


By Katie Koglman • October 7, 2026
United We Help: Why United Way Wayne and Holmes Stays Nonpartisan  Turn on the television. Scroll social media. Check your mailbox. Election season brings a steady stream of political messages, each competing for our attention and asking us to choose a side. It can be overwhelming, especially when you are trying to separate facts from opinions and decide whom to trust. At United Way Wayne and Holmes Counties, we value the trust our community places in us. That is why we want to be clear about our role during elections.We do not endorse candidates, oppose candidates, or tell people whom to vote for. As a 501(c)(3) charitable organization, we are prohibited from participating in political campaigns for or against candidates for public office. This is a legal requirement , not simply an organizational preference. Our responsibility is to serve Wayne and Holmes Counties and bring people together to help our neighbors. Nonpartisan does not mean silent We see the challenges people face every day: families struggling to afford groceries, workers facing transportation barriers, children needing opportunities to learn, and neighbors searching for mental health support. We have a role in helping our community and policymakers understand those needs. We can share information, educate elected officials, build relationships, and speak up about issues connected to our mission. We can also engage in some lobbying on specific legislation, within the limits that apply to charitable organizations. Speaking up about a community need is different from asking you to vote for a particular candidate. Can we do that? Our “Can We Do That? A Quick Guide to Nonprofit Advocacy” graphic uses a traffic-light approach to explain the difference. Green: Speak up for our community. Share stories, explain community needs, educate policymakers, and encourage civic participation. Yellow: Know the rules. Supporting or opposing specific legislation is lobbying, which comes with limits and responsibilities. Red: No candidate endorsements. We cannot support or oppose candidates, contribute organizational funds to their campaigns, or use our organizational voice to tell you whom to elect. We can encourage people to register and vote, and provide voter information, as long as those efforts remain neutral and do not favor or oppose candidates or political parties. Your vote belongs to you You may hear us discuss hunger, literacy, housing, transportation, or other issues affecting local families. You may see us meeting with elected officials to help them understand what is happening in our communities. Those conversations are about the people we serve. They are not candidate endorsements. We encourage you to ask questions, examine reliable information, learn about candidates, and make your own informed choices. The neighbors who turn to us for help have different backgrounds, beliefs, and political views. So do the donors, volunteers, and partners who make our work possible. Helping our community takes all of us. Election season will come and go. Our commitment to Wayne and Holmes counties continues regardless of the outcome. We encourage all of you to vote, and vote for who you think is the best candidate! Early voting begins October 6, 2026 through Sunday, Nov. 1, 2026 and Election Day is Tuesday, November 3, 2026. To find where you should go to vote Click Here. Go VOTE!!
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