What are Nonappropriated Funds?

• A. Cash and other assets received from sources other than those appropriated by Congress.
• B. Funds allocated by Congress
• C. Donations from private sources
• D. APFs used for operations

Answer: (A)

Nonappropriated funds are money the Army generates from activities that do not receive Congress-approved appropriations. They are cash and other assets earned from sources outside the federal budget, such as fees for using Morale, Welfare, and Recreation facilities and services, admissions, club dues, concessions, and the earnings on invested NAFs. Because these funds are not part of the appropriated budget, they are used to support morale and welfare programs directly for soldiers and their families. In contrast, funds allocated by Congress and APFs are part of the appropriated budget, and while private donations can contribute to NAFs, the defining idea is that these funds come from non-appropriated sources.