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The corporation can approved expenditures and reserved funds when the cash is not at hand. Such situations can occur when a donor designates a purpose for their donation, and this is accepted by the Board, but the funds are needed temporarily for another matter. Funds so used are still designated and are replaced in the reserve account when additional funding is received. Such situations can also occur when a designated donation cannot be actualized in the short term, as a situation where a site or principal for a project has not yet been secured, and the funds would otherwise sit idle. In all cases where an overfunding has occurred, funds in hand not available to cover what the Board has approved, this shall be so stated in clear terms at the Board Meetings where disbursement issues are brought before the Board.
Projects being funded for the first time will have a discretionary spending account established, in addition to approval of major items to be purchased or known expenditures to be pre-approved. Such a discretionary spending account will be 20% of the estimated project expenses where a one-time expense on a short-term project is involved. An example is assembly of servers, where the project is completed in the short term and hardware and software costs are estimated. Such a discretionary spending account will be a stated yearly allowance where annual maintenance is involved. An example is seed gardens which require fertilizer and packaging material, yearly. The discretionary account can be spent by the Principal as needed, but in all cases expenses should clearly be in support of the project. If the discretaionary account is exhuasted, the Principal must come before the Board, list all expenditures which expended the account, and explain the need for an increase before an increase can be approved.