Unrestricted Funds
Narrative
Unrestricted funds are funds that are not provided by the Federal
grant award or used to match that award, or are funds that are not considered
program income. Funds expended by the program, but not generated using its assets,
are not considered program income and are not governed by the cost principles.
Depending on how the funds are used, they may or may not be counted as non-Federal
share. The ways in which unrestricted funds may be used should be guided by
the agency's internal fiscal policies. (Program income and non-Federal share
are defined in the Glossary.)
The list below illustrates various ways an agency can generate
Unrestricted Funds:
- Have other organizations sponsor
activities away from the grantee agency site(s). The funds raised can then be
donated to the program and be designated as Unrestricted Funds.
- Receive donations from external
organizations.
- Become a beneficiary of an
individual's estate upon his or her death.
- Avoid having Head Start or Early Head
Start parents raise funds.
- Avoid using grantee agency facilities
for fund-raising activities.
- Generate profits from other agency programs that are not publicly funded and do not use any assets of the Head Start or Early Head Start program.
Related narrative discussions on Parent Fund Raising and the Parent
Activity Fund are available the Fiscal Community.
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