Permanently Restricted Funds Should Be Designated As Permanently Restricted on Pa. Financial Statements
Accountants have been confused by state’s adoption of statute which permits trustees to set income as a percentage of fund value
More than five years after the Pennsylvania legislature passed Act 141 of 1998 giving charitable trustees the right to adopt a unitrust-type spending policy to determine distributions from endowments, there is still no generally accepted consensus on the classification of such funds or the presentation of gains or losses in the funds under generally accepted accounting principles.
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