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That's my understanding as well, Isaac.

"Restricted" in accounting means the usage is constrained by an outside source, so that the organization is not free to use the funds for any purpose beyond that stipulated by the restriction.  "Only the donor can restrict" is the shorthand version of this.

However, as Isaac and John both say, that doesn't mean that the organization has to put the gift into the annual fund.  One common practice for large unrestricted estate gifts is to put the funds into a quasi-endowment, which functions in the same way as funds restricted by donors to the endowment, but which is not actually restricted, from an accounting/governance perspective. 

So while you are free to spend a portion of the funds on a facility project, or to designate a portion of the funds for a facility project, you're not actually "restricting" the funds for a facility project.

My US$0.02 worth; the usual disclaimers apply.

Good luck!

Alan

Alan S. Hejnal

Data Quality Manager

That's my understanding as well, Isaac.

"Restricted" in accounting means the usage is constrained by an outside source, so that the organization is not free to use the funds for any purpose beyond that stipulated by the restriction.  "Only the donor can restrict" is the shorthand version of this.

However, as Isaac and John both say, that doesn't mean that the organization has to put the gift into the annual fund.  One common practice for large unrestricted estate gifts is to put the funds into a quasi-endowment, which functions in the same way as funds restricted by donors to the endowment, but which is not actually restricted, from an accounting/governance perspective. 

So while you are free to spend a portion of the funds on a facility project, or to designate a portion of the funds for a facility project, you're not actually "restricting" the funds for a facility project.

My US$0.02 worth; the usual disclaimers apply.

Good luck!

Alan

Alan S. Hejnal

Data Quality Manager

That's my understanding as well, Isaac.

"Restricted" in accounting means the usage is constrained by an outside source, so that the organization is not free to use the funds for any purpose beyond that stipulated by the restriction.  "Only the donor can restrict" is the shorthand version of this.

However, as Isaac and John both say, that doesn't mean that the organization has to put the gift into the annual fund.  One common practice for large unrestricted estate gifts is to put the funds into a quasi-endowment, which functions in the same way as funds restricted by donors to the endowment, but which is not actually restricted, from an accounting/governance perspective. 

So while you are free to spend a portion of the funds on a facility project, or to designate a portion of the funds for a facility project, you're not actually "restricting" the funds for a facility project.

My US$0.02 worth; the usual disclaimers apply.

Good luck!

Alan

Alan S. Hejnal

Data Quality Manager

That's my understanding as well, Isaac.

"Restricted" in accounting means the usage is constrained by an outside source, so that the organization is not free to use the funds for any purpose beyond that stipulated by the restriction.  "Only the donor can restrict" is the shorthand version of this.

However, as Isaac and John both say, that doesn't mean that the organization has to put the gift into the annual fund.  One common practice for large unrestricted estate gifts is to put the funds into a quasi-endowment, which functions in the same way as funds restricted by donors to the endowment, but which is not actually restricted, from an accounting/governance perspective. 

So while you are free to spend a portion of the funds on a facility project, or to designate a portion of the funds for a facility project, you're not actually "restricting" the funds for a facility project.

My US$0.02 worth; the usual disclaimers apply.

Good luck!

Alan

Alan S. Hejnal

Data Quality Manager