Using Your B1G1 Funds
IN THIS ARTICLE
B1G1 Restricted Funds
When it comes to non-profits and charities, there are two types of funds that you may receive: restricted funds and non-restricted funds. Non-restricted funds can be used for any purpose, project, or program, and have no donor restrictions on them. Restricted funds, on the other hand, can only be used for the purpose for which they were specified by the donor.
All of the funds remitted to your organization through B1G1 are restricted funds.
What Does This Mean for Me?
This means that the funds you have received through B1G1 have to be used for the specific projects that B1G1 members have given to.
For example, if you have multiple projects listed with us and Project A has received US$10,000 while Project B has received US$2,000, these are the exact amounts you will have to use for each project. Even if Project B needs more funds and more urgently, you may not reallocate funds between projects.
You are also not able to choose to reallocate any funds beyond what was agreed and described in your listed projects.
For example, if a project is listed as providing the salaries of teachers in a school, the project's funds cannot be used to cover students' school uniform fee, even if school uniform expenses may be considered a part of your organization's same programme.
Please note that in some countries such as the US, there also exists specific guidelines and requirements for non-profits on accounting for restricted funds.
Agreeing to Use Restricted Funds
For every remittance advice that we send to you, you'll see that we’ve listed the exact amount that each project has received. Receiving Remittances from B1G1 has all the information you need about this.
When you receive your remittance advice, there’s one line right before the space for your signature that states:
"We have received from B1G1 Giving the remittance shown below for the above-described activities, and we confirm that these funds will be used for the projects stated."
By being a part of the Worthy Cause Program and signing the remittance advice, you are committing to using the funds you have received through B1G1 for their intended projects. This is important because B1G1 has promised our members that the amounts they have donated to their chosen projects will indeed go towards making an impact with that project and we need your support in keeping that promise. This promotes our community of trust and giving, and leads to continued giving!
B1G1's 6-Month Timeline
Another key component of our Cooperation Agreement is the 6-month timeline attached to our funds ( 11-A. Donations to Worthy Causes). What this means is that once you have received the remitted contributions from B1G1, you must deliver the funded project activities within 6 months of the date of receipt of the contributions. This is to ensure that the funds are being well-utilised for their intended purposes.
If you have reasons to believe that you are not able to keep within the 6-month timeline, you would have to write in to the Worthy Cause team at firstname.lastname@example.org, such that we can assess the situation. This could be due to the project being overfunded, the pausing of the project's operations due to unexpected circumstances, or other reasons. Once we have received your notice, our team will do our best to have a fair understanding of your situation and, in our sole discretion with our Board, decide how to move forward. Some possible next steps include pausing the listing of your project and/or extending the timeline of your funds.
We appreciate your help to keep us updated, and we will be glad to consider alongside you, how to best support the meaningful work that you do.
Why are B1G1 Funds Restricted?
Having restricted funds gives members the assurance that their giving will go towards the impacts they wish to make in the world.
What happens if my project scope has changed?
At times, you may find that the scope of your project has changed – perhaps your organization’s needs have evolved, the project has been expanded to include a wider range of expenses, or the situation doesn’t allow for the use of the funds right now. In such cases, please contact us and we will discuss together if an arrangement can be reached.