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A grant restriction is a limitation set by the grantor on how, when, or for what purpose the awarded funds can be spent by a nonprofit organization.
They ensure that nonprofits use funds according to the grantor’s intent, which is essential for compliance, transparency, and maintaining eligibility for future grants.
Aplos allows nonprofits to track restricted funds separately, monitor expenditures, and generate reports to demonstrate compliance with grantor requirements.
Violating a grant restriction can result in having to return funds, loss of future funding opportunities, and damage to the organization’s reputation.