Discovering the advantages and disadvantages of restriceted and unrestricted funding is key in running a successful nonprofit.  By understandign not only how to obtain but the fundemeantals of funding will help your nonprofit thrive as you build your liquidation. 

Rerstricted funding allot many benefits that can help you obtain facilities, offices, buildings, equipment, and much more. This form of funding usually is given through grants, or high-end donors. What does this mean? this means that the money that you recieve can be only utlized under a certain criteria given by the grantor or the high-end donor. You must understnad the nature of unrestricted funding and understand that reporting, accoutnability, and expectation is involved. The disadvantage of restricted funding is simply the restrictions. If you recieve a 150k grant for a new building you cannot use that fudning to buy products for your nonprofits. Remember resctricted funding is bound to it's own restrictions. 

Unrestricted funding is the exact opposite of restricted funding, this type of funding is usually untraced and can be utilized in any area for your nonprofit.Whether it is for payroll or for buying paper for your copying machine there are no restrictions. The beauty of having or recieving unrestricted funding you can build a liquidation. This simply means that you have money stored to the side that is unrestricted funding that can be used for any emergencey. These fundings are given by sponors, donors, events, and auctions. The disadvantage of unrestricted funding is simply receieving enough unrestricted funding to pay any type of building payment or other essentials. It takes ground work and proper targeting to obtain the specific amount of unrestricted funding.