DGMT NGO Commons - A Resource for Enhancing Good Governance and Accountability

A Resource for Enhancing Good Governance and Accountability

Raising Unrestricted Funds

Making sure that the organisation has enough money to do it’s work, remains the responsibility of the Board.  In some cases, organisations are self-financing i.e. they are able to generate an income for themselves by, for example, charging membership fees, charging a fee for the service that they provide or renting out spare office space. But, it is generally the case that very few organisations are able to cover all their costs in this way and Board Members play an important role in guiding (and representing the organisation in) efforts to generate  unrestricted funds,  or funds that may be used for any purpose that helps the NGO achieve its mission.  Put another way, unrestricted funds have no restrictions on how funds may be spent, provided they are used to support the work of the organization.  Other common sources of unrestricted funding are:

  • general donations (from individuals or companies), but these are often once-off donations and not a reliable source of income
  • raising funds from the local community.  Often these include regular contributions from Board Members and local business.