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Can a charity borrow from restricted funds

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aroominyork
aroominyork Posts: 3,312 Forumite
Part of the Furniture 1,000 Posts Name Dropper
edited 29 September 2021 at 2:01PM in Charities
Is it permitted for a charity to use restricted funds for other purposes (without asking permission from the donor) if Trustees have personally guaranteed to repay the funds in time to deliver the activity for which the funds were donated?

Comments

  • Savvy_Sue
    Savvy_Sue Posts: 47,312 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I'd say not, but it may depend on the restrictions applied to the restricted funds. 

    What does the treasurer say? Have you asked the charity's auditors / independent examiners?

    If the trustees are giving personal guarantees, why don't they make donations now and avoid the grey areas completely? 

    If in doubt, get proper advice ...
    Signature removed for peace of mind
  • I think there's a clue in the word 'restricted'.
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