Dictionary » Letter B » board-designated restriction
An action by a nonprofit organization's board of directors to earmark an asset for a specified purpose. Since this is not a donor-imposed restriction, the designated asset is classified and reported as part of unrestricted net assets.
| » For more clarity on this term: |
← Go Back |
Join our Newsletter
![]() | Receive our free 19-page accounting cheat sheet. Plus, stay up to date with the latest questions answered. |