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Often departmental activities will be funded from a variety of sources that may include income for a trust fund. In order to make the best use of the various funds available, a Department should in general seek to charge expenditure against funds in the following order of priority, subject of course to eligibility and the extent of available balances.

First charge to Restricted Funds

  • Trust Funds
  • Appropriations in Aid
  • Specific endowments
  • Specific donations
Then General Donations
Finally charge to Other balances available to the Department e.g.

  • Trading account surpluses
  • Departmental share of overheads
  • The Chest

Responsibility for ensuring that Departmental procedures achieve this order of priority rests with the head of Department. We have a duty to spend any restricted money first and the key factors affecting the order of spend are likely to be a combination of:

  • Order of receipt - we have a prior duty to spend earlier funds first (and this should affect our decision to accept subsequent restricted gifts);
  • Relative restriction - if fund A's purpose are wider than fund B then it may make sense to spend fund B first in case its purposes "dry-up" in the future.
  • We have a moral and charitable obligation not to avoidably accumulate balances in trust funds.

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