Nonprofit Restricted Fund Management and Release
Proper management of donor-restricted funds is both a legal obligation and an ethical duty. Spending restricted funds for unauthorized purposes violates donor intent and can constitute civil fraud. This monthly review ensures all restrictions are tracked and honored.
- Industry: Nonprofit
- Frequency: Monthly
- Estimated Time: 2 hours
- Role: CFO / Controller
- Total Items: 26
Net Asset Classification
Verify correct net asset classification.
- New restricted gifts classified correctly as with donor restrictions?
- Purpose restrictions distinguished from time restrictions in records?
- Permanent endowment corpus distinguished from spendable endowment earnings?
- Board-designated funds properly classified as without donor restrictions (not restricted)?
Restriction Tracking
Track individual fund restrictions.
- Donor gift agreements documenting restrictions on file for all restricted gifts?
- Restrictions recorded in accounting system at fund level?
- Fund balance tracking system showing balance available in each restricted fund?
- Grant restrictions tracked separately from individual donor restrictions?
- Time-restricted funds approaching restriction release date identified?
Expense Compliance with Restrictions
Verify expenses comply with restrictions.
- All expenses charged to restricted funds reviewed for compliance with restriction purpose?
- No restricted fund overspent beyond available balance?
- Restricted program funds used only for program expenses, not admin (unless permitted)?
- Indirect cost charges to restricted grants approved by donor/funder?
Fund Release Documentation
Document fund release.
- Release from restriction properly documented when restriction is met?
- Fund releases approved by appropriate authority before reclassification?
- Documentation supporting each release filed in grant or donor record?
- Funders notified when grant objectives are met and funds fully expended?
Restricted Fund Reporting
Prepare restricted fund reports.
- Management reports showing restricted fund status prepared monthly?
- Restricted fund summary reported to board in financial statements?
- Grant expenditure reporting aligned with restricted fund tracking?
- Form 990 Schedule D endowment and restricted fund data prepared accurately?
Legal Compliance
Ensure legal compliance.
- Any outdated or impossible restrictions identified and cy pres process initiated?
- Attorney general reporting for restricted fund modifications completed if required?
- Restricted funds not co-mingled with operating funds in ways that obscure restrictions?
- Complex or ambiguous restriction interpretations reviewed with legal counsel?
- Restricted fund schedules prepared for annual audit?
Related Nonprofit Checklists
- Nonprofit Social Enterprise and Earned Revenue Compliance
- Nonprofit Annual Audit Preparation and Readiness Checklist
- Nonprofit Grant Tracking and Fund Accounting Ledger Review
- Nonprofit Donor Receipt and Acknowledgment Compliance Audit
- Nonprofit Volunteer Risk Management and Insurance Review
- Nonprofit Donor Acknowledgment and Gift Substantiation Audit
- Nonprofit Capital Campaign Management and Compliance
- Nonprofit Corporate Partnership and Sponsorship Management
Related Financial Management Checklists
- Nonprofit Grant Tracking and Fund Accounting Ledger Review - FREE Download
- Nonprofit Donor Receipt and Acknowledgment Compliance Audit - FREE Download
- Nonprofit Annual Audit Readiness Review - FREE Download
- Nonprofit Annual Budget Development and Board Oversight - FREE Download
- Nonprofit Financial Internal Controls Annual Review - FREE Download
- Nonprofit Gift Acceptance Policy Compliance Review - FREE Download
- Nonprofit Monthly Financial Reporting Package - FREE Download
- Nonprofit Financial Policy Annual Review and Update - FREE Download
- Nonprofit Investment and Endowment Management Review - FREE Download
- Nonprofit Accounts Payable and Disbursement Controls - FREE Download
Why Use This Nonprofit Restricted Fund Management and Release?
This nonprofit restricted fund management and release helps nonprofit teams maintain compliance and operational excellence. Designed for cfo / controller professionals, this checklist covers 26 critical inspection points across 6 sections. Recommended frequency: monthly.
Frequently Asked Questions
What does the Nonprofit Restricted Fund Management and Release cover?
This checklist covers 26 inspection items across 6 sections: Net Asset Classification, Restriction Tracking, Expense Compliance with Restrictions, Fund Release Documentation, Restricted Fund Reporting, Legal Compliance. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed monthly. Each completion takes approximately 2 hours.
Who should use this Nonprofit Restricted Fund Management and Release?
This checklist is designed for CFO / Controller professionals in the nonprofit industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.