Temporarily Restricted Net Assets

Temporarily Restricted Net Assets

Cash or other assets that are not needed to pay liabilities but still may not be spent freely for a period of time. Temporarily restricted net assets may be earmarked for a specific purpose; alternately, law or regulation may require the restriction of some net assets until certain benchmarks are met.
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Temporarily restricted net assets consist of the following at April 30: 2015 Society Foundation Total Scholarships $1,800 $1,800 Forbes Medal Award $38 38 Total $1,800 $38 $1,838 2014 Society Foundation Total Scholarships $1,858 $1,858 Financial Literacy and Other Programs 15 15 Forbes Medal Award $33 33 Total $1,873 $33 $1,906 Temporarily restricted net assets released from restriction consist of the following for the years ending April 30: 2015 Society Foundation Total Scholarships $400 $2 $402 Administrative and Program Costs 309 309 Total $709 $2 $711 2014 Society Foundation Total Scholarships $338 $3 $341 Administrative and Program Costs 434 434 Total $772 $3 $775
Temporarily restricted net assets are those whose use has been restricted or that have been limited by donors to a specific time period or purpose.
Temporarily Restricted Net Assets are available as follows at July 31, 2011: RI Founding Donor Fund 247,844 Fosters Charitable 379,835 Purpose-Restricted Contributions 68,466 Appreciation of Restricted Funds 195,313 Grants Fund 1,586,719 Campaign for CLF 2,123,164 $4,601,341 Permanently Restricted Net Assets are as follows at July 31, 2011: The advocates Endowment 952,545 Urgent Action Fund 494,189 Beneficial Interest in Trust 158,418 The Brush Fund 130,121 Dave Cavers Fund 453,355 Keith Lane Miller, Esq.
As a result of this change, the portion of donor-restricted endowment funds that is not classified as permanently restricted net assets must now be classified as temporarily restricted net assets (time restricted) until appropriated for expenditure by the organization.
all revenues, expenses, gains, and losses that are not changes in permanently or temporarily restricted net assets, and reclassifications from (or to) other classes of net assets (SFAC # 6, paragraph 94).
When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets.
Financial statement presentation: The Association is required to report information regarding its financial position and activities in three classes of net assets: unrestricted net assets which have no donor-imposed restrictions, temporarily restricted net assets which have donor-imposed restrictions that will expire in the future, and permanently restricted net assets which have donor-imposed restrictions which do not expire.
Change in Temporarily Restricted Net Assets 261,697
Gifts intended for use in later periods or intended by donors to be used for specific purposes are to be recognized immediately as revenue and an increase to temporarily restricted net assets.
The foundation will record the $100,000 asset (cash) and recognize contribution revenue that increases temporarily restricted net assets because the foundation and the hospital are financially interrelated.
Donor-restricted investment income is reported as an increase in temporarily restricted net assets or permanently restricted net assets, depending on the type of restriction.

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