USA Non-Profit Non-Endowed Funds

[Katlyn]

Currently, I started working for a college foundation that does all of their accounting themselves instead of running everything through the college GL. They have three main types of funds: endowment, annual award, and unrestricted funds. My question pertains to annual award funds. When the annual awards are invested and income is earned from the investment does that income become completely unrestricted because the fund is not endowed and is completely expendable? Or should that income be put towards the original gift to be spent on scholarships. Most annual awards are time restricted, but I have a lot of scholarship agreements that a vague and do not have a lot of information.

Thank you,

Katlyn

 

[Fidget]

What you do with it will depend upon the conditions attached to it, so you might want to try and source a copy of the agreement or ask the awarding body for a copy if need be. That will likely set the boundaries on what you can/can't do with annually awarded money.