Understanding How Your Support Makes an Impact
Your generosity fuels our mission to make eyecare more accessible worldwide! To be good stewards of your support, we believe it’s important to explain how donations are used and why different types of funding matter for the long-term health of our work.
When discussing nonprofit funding, two key terms are often used: restricted funds and unrestricted funds. Understanding the difference between the two will help ensure that you’re giving in a way that feels right to you.
At SEE, every gift is treated with care and transparency. Whether your gift is restricted or unrestricted, your donation helps advance our mission to create a lasting impact across communities worldwide.
Restricted vs. Unrestricted Funds: What’s the Difference?
According to NFP Partners, “Restricted funds are donations or grants specified by donors for particular purposes or projects. These funds come with explicit limitations on their usage, requiring nonprofits to allocate them according to the donor’s intentions.”
In contrast, “Unrestricted funds are contributions without specific limitations. These funds can cover operational expenses, salaries, or other immediate needs.”
For example, imagine SEE receives a $100,000 grant from a local foundation. Of this, $50,000 is restricted specifically to our SEE Vision Care program in support of our local work, while the other $50,000 is unrestricted, giving SEE the flexibility to allocate it strategically to areas of greatest need and impact.
To uphold this level of accountability, nonprofits like SEE prepare detailed budgets as part of the grant application process, clearly outlining how restricted and unrestricted funds may be used. This approach ensures that grant requirements and intent are honored while maintaining transparency and compliance with IRS guidelines.
Why Both Matter
It’s important for our donors to understand these funds and how beneficial both can be in strengthening an organization. Nonprofits that rely too heavily on restricted funding may face limitations in covering core operational expenses and responding quickly to emerging or urgent needs.
At the same time, relying too heavily on unrestricted funding without alignment to specific programs can make it more challenging to demonstrate measurable impact in targeted areas or to secure long-term, program-based support.
That’s why a thoughtful balance of both types of support is essential for carrying out our mission sustainably and effectively.
Stewardship You Can Trust
No matter how you choose to direct your gift, whether toward a specific program or as general support, your generosity is vital to restoring sight and building sustainable eyecare systems around the world. Visit our website to review our finances and see the impact of our work firsthand.
Note: This information is for general purposes only and is not financial or tax advice. Please consult a qualified financial advisor for guidance. For questions about giving to SEE International, contact our VP of Development, Gerry Pantoja, at gpantoja@seeintl.org.
