If a donor contributes funds to be invested for a set number of years and then become available for expenditure,the funds would be considered as a(n)

Question

Quizplus · Accepted Answer

The description of the funds being invested for a set number of years and then becoming available for expenditure is most indicative of a term endowment. This type of endowment allows the organization to invest the funds for a specific period but also provides the flexibility to use the funds after the term is over. A quasi-endowment is funds that have been designated by the organization itself to function as an endowment. An endowment, on the other hand, is funds that are permanently invested, and only the investment income is available for expenditure. Therefore, option B, term endowment, is the best choice.

If a Donor Contributes Funds to Be Invested for a Set