Classification for Accounting Purposes. a) Permanently Restricted Fund (Permanent Endowments) - include wherein donors have stipulated that all or a specified portion of the principal contributed be invested and maintained in perpetuity. Income earned from these investments is available for expenditure according to restrictions imposed by the donors and consideration of the appropriation criteria by the Foundation pursuant to the New York Prudent Management of Institutional Funds Act (“NYPMIFA”). b) Temporarily Restricted Fund – represents amounts restricted by donors for specific activities of the Foundation or to be used at some future date. The Foundation records contributions as temporarily restricted if they are received with donor stipulations that limit their use either through purpose or time restrictions. When a donor restriction expires, that is, when a time restriction ends or a purpose restriction is fulfilled, temporarily restricted net assets are reclassified to unrestricted net assets and reported on the statement of activities as net assets released from restrictions. However, when restrictions on donor-restricted contributions and investment returns are met in the same accounting period, such amounts are reported as part of unrestricted net assets. c) Unrestricted Fund –is not subject to donor-imposed stipulations. Unrestricted net assets may be designated for specific purposes by actions of the Board of Directors. Unrestricted net assets can be utilized to carry out any of the purposes of the Foundation.
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Samples: Service Agreement, Service Agreement, Service Agreement