Donor Restrictions
Purpose and Time Restrictions
Donors may restrict contributions for specific purposes or future periods. These restrictions remain until the organization satisfies the donor's requirements.
- Purpose restrictions (e.g., scholarships, research).
- Time restrictions (e.g., use next fiscal year).
- Restrictions expire when fulfilled.
- Expired restrictions are released from restriction.
Note
When donor restrictions are satisfied, amounts are reclassified from net assets with donor restrictions to net assets without donor restrictions.
Summary
Donor restrictions affect classification but not necessarily the timing of contribution revenue.