Time to Take a Fresh Look at Old Board-Designated Funds [SUBSCRIBERS-ONLY]

In my professional life I view many financial statements from a wide variety of nonprofit organizations, and I am always amazed, but not shocked, by how many of these nonprofits have Board-designated funds sitting on their balance sheets. Two questions immediately come to mind. Why where they originally established? Is the purpose still relevant today? Often the answers lie in understanding the circumstances occurring at the time the Board originally designated the funds.

Board-designated funds are often misunderstood because of inaccurate perceptions and the absence of clear and easy-to-understand information related to purpose and relevance.