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The coronavirus pandemic is forcing charities to take a long, hard look at their finances, as well as requiring some charities to launch emergency fundraising appeals in response to rising demand for their services.
In the absence of a steady income stream from fundraising or trading, it has been necessary for the trustees and executive boards of many charities to see what funds a charity may already have available to allow it to carry out activities in pursuit of its charitable Objects, even if some of those funds may previously have been earmarked for other purposes, or long term plans.
Trustees facing this situation need to be particularly aware both of the existence of restricted funds within their charities, and of the possible consequences for trustees of incorrectly using such funds.
For more on the types of funds a charity might hold, and how they can be used (or can’t be used, in some cases), as well as information on how to avoid creating restricted funds through fundraising, read Neil Burton’s article over on our Coronavirus hub.
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