In Michelle’s recent blog, she spoke about key sources of unrestricted income and the ultimate ‘unicorn’ donation – unallocated funding. Unallocated funding is not pinned to any one programme or expense. Unallocated funding can be used wherever the NPO wishes, including covering general operating expenses, salaries, once-off expenses or ongoing commitments.

Every NPO dreams of unallocated funding.

I’m guessing you are already thinking of your list… so how would you choose to use a marvellous gift of unallocated funding?

Let’s be real, all NPOs always have “holes” which swallow any extra funding swiftly. Unexpected programme costs, a leaking roof, staff meals, the list is endless. That’s why it’s important to respond, not react.

The next time your organisation receives unallocated funding, put it into an investment account while you decide where and how you want to use it.

Get your team together and ask:

1. Can we invest this gift in strategic initiatives that set us up for future and/or more unrestricted income?
2. Have we thought about buying a building or asset that can be used to generate income?
3. Do we have a strategic plan to use this money in initiatives that will attract donors to support them?
4. How can we multiply this money?

You may choose to plug a hole which desperately needs to be plugged, or perhaps you’ll find a future funds growth investment that will be a blessing in the future.

Whatever you do, save some seed to plant and harvest in the days ahead.