Revolving funds, established for the purpose of carrying out specific activities, institute a basis under which financing for the cost of goods or services furnished to or by a government agency originate.
The non-profit then can work to generate the revenue, donations, or other support that will repay the money spent.
Another example would be a revolving fund established to provide support for programs that require a long-term commitment for planning well ahead of the non-profit's fund-raising cycle.
The donor's commitment is limited and the gift can be restricted for the sole purpose of supporting the program(s) for which it is intended.
A revolving fund charges for the sale of products or services and uses the proceeds to finance its spending, usually on a self-sustaining basis.