Restricted Funds
What are restricted funds?
A restricted fund includes money that a donor has given to a healthcare organization to be used for a specific purpose.
In some cases, restrictions are only temporary, which means that once the purpose of the donation has been fulfilled, the money that remains can be used for other needs of the organization.
Restricted funds for a hospital are typically money that goes towards:
- Research for a particular disease/treatment
- Renovation/development of a particular hospital facility/ward
- Specific medical equipment
- Paying bad debts
Why are restricted funds significant in healthcare?
Restricted funds provide donors with assurance that their monetary donation will be set aside and used for the specified program or initiative which they are most passionate about.