Acquittal

In the context of not-for-profit governance and not-for-profit fundraising, acquittal refers to the fulfilment or discharge of obligations relating to funding arrangements.

This term is commonly used when an organisation has received a grant or funding from an external source, such as a government agency, a private foundation or charitable trust.

Acquittal Process

The acquittal process involves demonstrating that these funds have been used appropriately and according to the terms set out in the funding agreement.

This usually requires thorough financial reporting and documentation, including receipts, invoices, and financial statements. Successful acquittal of funds helps maintain the trust of the funding body and could impact the organisation’s eligibility for future funding.

Acquittal Example

Below is a short example to demonstrate how acquittal works.

Let’s imagine that a not-for-profit organisation dedicated to environmental conservation receives a grant from a government agency to fund a specific tree-planting project.

The funds are earmarked solely for this project, which includes activities such as purchasing saplings, hiring personnel for planting, and ongoing maintenance for a period of 5 years.

To acquit these funds, the organisation must carefully track all expenditures related to the project. This includes invoices for the saplings purchased, pay slips for the personnel hired, receipts for any equipment bought or rented for volunteers to use, and any other related costs.

At the end of the project, or at predetermined intervals as outlined in the funding agreement, the organisation provides a detailed financial report to the government agency. This report demonstrates exactly how the funds were used, supported by the collected documentation such as invoices and receipts. The organisation may also need to provide additional evidence of the project’s progress or success, such as photographs of the planted trees or data on the number of trees planted.

If the government agency is satisfied that the funds were used appropriately and in accordance with the funding agreement, the funds are considered acquitted. This successful acquittal maintains the trust of the government agency, demonstrates the organisation’s accountability, and increases its chances of receiving future grants.

Additional Resources

The Funding Conundrum

What Boards and CEOs Need to Know About the Future of Philanthropy and Fundraising

Fundraising Fundamentals for Board Members

Board Fundraising Check-Up

Related Terms

Governance

Minutes