Donations can be Restricted or Unrestricted

Katie Koglman • 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.


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Just Love: My United Way Wayne & Holmes Journey (Year One) By: Megan Wilson It's hard to believe a year has flown by since I took the plunge and joined the United Way Wayne & Holmes Counties team. This leap into the non-profit world has been more than just a job change; it's been a deeply personal journey of discovery and immense reward. I'm constantly struck by the incredible network of individuals, organizations, and businesses right here in our community, all working tirelessly to uplift the lives of our neighbors. The sheer dedication I see every day is truly inspiring. Before joining the team, I found myself searching for a way to make a real, tangible difference. I explored different paths, but the pull towards a career focused on helping others was undeniable. I yearned for work that resonated with my core values, something that allowed me to contribute to something bigger than myself. That search led me to United Way Wayne & Holmes Counties, an organization whose mission – mobilizing community resources to help people measurably improve their lives and partnering to identify and address pressing needs for long-term, sustainable solutions – spoke directly to my heart. Stepping into this role was, admittedly, a little daunting. My previous fundraising experience peaked with the Parent-Teacher Organization at my kids' elementary school! The scope of the work, coupled with the ambitious goals, made me wonder if I could truly make a difference. But I quickly found myself embraced by an amazing work environment – positive, fun, energetic, and truly uplifting. Our CEO, Katie Koglman, has cultivated a culture of empowerment, and her belief in what we can achieve is contagious. My colleagues have shown me the true meaning of teamwork, proving that together, we're capable of anything. That feeling of empowerment is invaluable. I'm incredibly passionate about the work we do at United Way Wayne & Holmes Counties, especially when it comes to supporting literacy. Programs like Reading Under the Lights and Dolly Parton’s Imagination Library, which we both run and fund, are close to my heart. Providing free books to kids is such a powerful way to ignite a love of reading and set them up for future success. But our commitment to the community goes far beyond just books. Every dollar we raise stays right here in Holmes and Wayne Counties, directly impacting our neighbors and strengthening our community from within. We're not just behind-the-scenes fundraisers; we're actively involved in our communities, working alongside our partners to make a real difference in the lives of those around us.  This past year has been a whirlwind of learning, growth, and connection. I've gained a deeper understanding of the challenges facing our community, but even more importantly, I've witnessed the incredible resilience and generosity of its people. Our work wouldn't be possible without the support of our donors and partners. I'm so grateful to be part of this organization, working alongside such passionate and dedicated individuals. People often ask what we do. We're more than just fundraisers; we're connectors, unifiers, and problem-solvers, supporting vital services that strengthen our community. I'm excited to see what the next year brings and the continued positive impact we'll make together in Wayne and Holmes Counties. I absolutely Just, Love everything about my last year!
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