What’s the Difference?

Restricted Funds
These are donations or grants given for a specific purpose. The funder sets the rules: maybe it's for a youth project, a training programme, or a particular piece of equipment. You’re expected to spend that money exactly as agreed—no exceptions.

Unrestricted Funds
This money is yours to allocate as needed. You can put it towards rent, salaries, core admin costs, or whatever keeps your organisation running day to day. Unrestricted funds give you breathing space and flexibility.

✅ How to Record It (The Simple Way)

You don’t need fancy software to do this well, just a good system. Here’s one approach:

1. Use Separate Codes or Columns

Whether you’re using a spreadsheet or software like QuickBooks or Xero, create:

• A code or category for each restricted fund.
• A clear way to tag income and expenses related to that fund.

2. Match Income to Costs

Every time you receive restricted funding, record:

• The income amount.
• The related costs as they’re spent.

This helps you report on the balance remaining at any point.

3. Keep a Running Total

Download our simple tracker

Even a basic version like this can save you hours later.

🧩 Bonus Tip: Watch Out for Mixed Funding

Some funders allow part of the grant to cover core costs (like admin or staff time), which can blur the lines. If you’re not sure whether a cost is allowed, check the grant agreement or ask the funder.

💬 Need help setting up a simple system for tracking restricted funds?
At North West Numbers CIC, we work with you to set up clear, low-stress ways of managing and reporting on different types of income. Whether you’re using spreadsheets or accounting software, we’ll help you make it work.

👉 Contact us today to chat about how we can support your team.