Restricted donations are very common. Donors often have the choice of designating a fund when giving money to a charity. I believe the money in a restricted fun

Restricted donations are very common. Donors often have the choice of designating a fund when giving money to a charity. I believe the money in a restricted fund is legally required to be used for the designated purpose. As far as I'm aware, the legal limitations on fund restrictions are designed to prevent restrictions which are designed to circumvent the tax code. As an example, lets say you give money to a charity. You could require the funds be used to create and administer a scholarship for youth from your home town. You could not require the funds be used for a scholarship for children who live in your household. This is based on what I've incidentally learned working for a non-profit. I'm not an accountant or a lawyer, so I might have missed some nuance, but I think that's the gist of it. Here's a link to some information on managing restricted funds: https://www.thebalance.com/restricted-unrestricted-nonprofit-funds-2502167 https://www.thebalance.com/restricted-unrestricted-nonprofit...