If a donor were to contribute money with instructions that the funds be invested for a period of time and then released to be used for any purpose,this would be called a(n):
A) Unrestricted endowment
B) Permanent endowment
C) Term endowment
D) Quasi-endowment

Question

Quizplus · Accepted Answer

If a donor contributes money with instructions that the funds be invested for a period of time and then released to be used for any purpose, this is called a term endowment. This is because the funds are restricted for a specific period of time (the term), after which they can be used for any purpose. An unrestricted endowment would not have any specific instructions attached to it, while a permanent endowment would have the funds restricted permanently. A quasi-endowment refers to funds that were originally unrestricted but have been designated for a specific purpose.

If a Donor Were to Contribute Money with Instructions That