Difference between revisions of "Types of Funds"

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IRS: [http://www.irs.gov/irm/part4/irm_04-076-051.html#d0e1310 Proper Reporting of Fund-raising Activities on Form 990]
 
IRS: [http://www.irs.gov/irm/part4/irm_04-076-051.html#d0e1310 Proper Reporting of Fund-raising Activities on Form 990]
  
NPCCNY: [http://www.npccny.org/info/fi29.htm Temporarily Restricted vs. Permanently Restricted: Financial Statement Presentations]
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NPCCNY: [http://www.npccny.org/info/fi29.html Temporarily Restricted vs. Permanently Restricted: Financial Statement Presentations]
  
 
NonprofitAccountingBasics.org: [http://www.nonprofitaccountingbasics.org/reporting-operations/statement-financial-position Statement of Financial Position]
 
NonprofitAccountingBasics.org: [http://www.nonprofitaccountingbasics.org/reporting-operations/statement-financial-position Statement of Financial Position]

Revision as of 21:17, 20 December 2018

SEE ALSO: Generally Accepted Accounting Principles (GAAP)


Unrestricted funds are those items that have no donor-imposed restrictions.

Temporarily Restricted funds are those items that were received with a donor-imposed restriction that will be satisfied in the future (generally within one year). The donor’s restriction may be for a particular purpose or program or for use in a specified time period.

Permanently Restricted items are those received with a donor-imposed restriction that states that the donation must be maintained permanently, but may permit the organization to use up or expend part or all of the income derived from the asset.

A board restricted fund is not the same as an endowment fund, although many groups mistakenly call it such. Technically, a board designated fund will appear on the financial statement as “unrestricted” because the limitation was imposed by the board of directors rather than the donor.[1]

Resources

IRS: Proper Reporting of Fund-raising Activities on Form 990

NPCCNY: Temporarily Restricted vs. Permanently Restricted: Financial Statement Presentations

NonprofitAccountingBasics.org: Statement of Financial Position

Montana Nonprofit Association:Excerpts from Statement of Financial Accounting Standards No. 116 “Accounting for Contributions Received and Contributions Made” Financial Accounting Standards Board, June 1993

Notes

  1. http://www.npccny.org/info/fi29.htm