Question.

What are contractual or legislative restrictions?

Answer.

A non-profit may have contracts, with funders, for example, which restrict what they do. In addition, there can be limits that are stated in legislation regarding certain programs. For example, a non-profit might find that there are program restrictions that require it to engage only in housing activities for the elderly if it is to receive funds under the program. The limitations or restrictions would be found in either the funding contract or the legislation relating to a particular program.


 

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