The difference between restricted and unrestricted funding
Launch library · evergreen read
Restricted funding is tied to a specific purpose or project, and must be spent accordingly, which can bring welcome resources for a particular activity but offers little flexibility if circumstances change during the course of a campaign. Spending it on anything else, however sensible it seems, can breach the terms agreed with the funder.
Unrestricted funding can be applied wherever a campaign judges the need to be greatest, offering far more flexibility, though it is often harder to secure, since many funders prefer to see their contribution tied to a specific, clearly defined outcome. That preference is understandable, even when it makes life harder for the campaign receiving it.
A healthy funding mix usually includes some of both, using restricted funding for defined projects while relying on unrestricted funding to cover the core, ongoing costs and unexpected needs that restricted grants are rarely designed to address. Chasing only restricted funding, however generous, can quietly starve a campaign's everyday operations.