[GNC] Further to restricted/unrestricted funds

[Fred Bone]

On 29 August 2020 at 11:40, Chris Green said:

> I have been doing some reading around this restricted/unrestricted
> funds issue.
>
> I think in reality we have *no* restricted funds in our PCC.  What I
> *thought* were restricted funds are actually 'designated' funds.  I.e. we
> (the PCC) have made a collection for example 'for repairs to the church
> roof', this is (as I understand it anyway) designated and while it will
> probably be used to mend the roof the PCC is quite at liberty to change
> its mind and do something else with the money.
>
> A restricted fund is something where the *donor* has specified that
> the money is to be used for a specific purpose and is often long term and
> may actually (though not necessarily) be an endowment or some such.
>
> I don't think I need to manage 'restricted' funds as we don't have any in
> our tiny little church.

You may be right, but if a collection has been made *for a specific
purpose* (such as "repairs to the church roof") then the contributors are
entitled to expect the proceeds to be spent on that specific purpose, and
so you should be running a "restricted" fund. The fact that there are
dozens of people rather than a single donor is beside the point.