What is a Restricted Grant and How to Handle It? – A Nonprofit Guide

The restricted grants in Nonprofits are the reserved funds designated by donors to be utilized only for specific purposes. The purpose and the time to use the funds are determined by the donor, giving them assurance their gifted money is being used as they wish. If you donate money to a Nonprofit today and want that money to be used for a particular event next year, the organization records your donation as a restricted fund in their books.