If a donor endows a professorial chair at a school, he or she gives a gift and indicates that the earnings from the gift must be used by a specific professor. Would the initial gift be recorded in a fund with donor restrictions or a fund without donor restrictions? Would the earnings be recorded in a fund with donor restrictions or a fund without donor restrictions?

Answer rating: 100% (QA)

1 Usually endowments are considered to fall in the category of restricted funds Here the donor endows the professional chair as a gift and mentions that the earnings from the gift be used by a specifi... View the full answer