Which of the following terms is used to indicate that a donor provided a gift with explicit instructions that the gift is to be used for a specific purpose by the NPO but the entire amount may be spent right away?

Question

Quizplus · Accepted Answer

Temporarily restricted net assets are funds that have been donated to the NPO with explicit instructions from the donor that the funds are to be used only for a specific purpose or project. However, the restriction on these funds is only temporary, meaning that the restrictions will eventually expire, and the NPO will have full control and discretion over how the funds are used. This is in contrast to permanently restricted net assets, which are funds that have been donated with permanent restrictions that cannot be lifted by the NPO. Board-designated net assets refer to funds that are designated by the NPO's board of directors for a particular purpose or project, while endowment assets are funds that are set aside to provide ongoing support for the NPO's mission over the long-term.

Which of the Following Terms Is Used to Indicate That