Help centre / Money & accounts / Keep restricted funds separate
Keep restricted funds separate
The fund register lists money your charity holds that comes with conditions. From the Finance page, choose Fund register, then Add fund, and record each one with the wording that binds it. Restricted money may only be spent on its purpose, and your annual report must disclose these funds.
Why keep a fund register?
Some of your charity's money isn't free to spend on anything. If a donor gave Meadowbank Community Trust £5,000 "for the new roof", that money may only be spent on the roof. Trustees are responsible for honouring this, and your annual report must disclose these funds under the SORP rules.
The fund register is where you record each one, with the exact wording that binds it. Then every trustee can see what's held and why, without digging through old letters.
The four kinds of fund, in plain words
- Restricted: given for a specific purpose. It can only be spent on that.
- Endowment: capital that must be kept invested. Usually only the income it earns can be spent.
- Designated: unrestricted money the trustees have set aside for a purpose. The board can change its mind about this. It can't change a donor's restriction.
- Agency: money held for someone else. It isn't the charity's own.
Add a fund
- Open the Finance page and choose Fund register.
- Choose Add fund. Trustees and admins can do this.
- Give the fund a name, for example "Roof appeal".
- Pick its type. A short hint under the box explains each one.
- Under "What it may be spent on", paste the exact wording from the donor, appeal or grant. That wording is what binds the money, so keep it word for word.
- Note where the restriction came from, for example "2026 roof appeal letter".
- Enter the current balance. If your accounting software is connected, you can link account codes or classes instead for a live balance.
- Choose Add.
What happens next
Each fund shows its balance, and when you record donations against it, the money raised so far. Linked funds stay live from your books; the rest use the balance you entered. Nothing here changes your accounting software, and you can edit a fund at any time.