An endowment that is for the benefit of individuals and not the government controlling the funds should be accounted for using a private-purpose trust fund.

Question

Quizplus · Accepted Answer

Private-purpose trust funds account for trust agreements where principal and/or income benefit individuals, private organizations or other governments. The benefit is limited to specific private, rather than general public, purposes. An endowment to provide scholarships would benefit individuals and would be accounted for in a private-purpose trust fund.

An Endowment That Is for the Benefit of Individuals and Not