Quick Reference: restriction vocabulary
Recall the core vocabulary used to distinguish donor restrictions, internal designations, conditions, and releases.
Donor restriction or board designation? Compare Both affect planning, but only the donor restriction changes net asset classification. What does a condition affect? Whether contribution revenue is recognized at all. A barrier plus right of return or release can delay recognition until the barrier is substantially met. What does a restriction affect? Availability after revenue is recognized. Purpose or time restrictions keep recognized revenue in net assets with donor restrictions until release. Can we use restricted cash temporarily and put it back later? Leadership wants to bridge a short-term operating gap. It is only temporary. Your line Temporary use still…
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