With , funds given by donors specify that the principal be retained and be invested in perpetuity, and the board has limited or no flexibility in using these funds.
A) quasi-endowment
B) liquid assets
C) pure endowment
D) unrestricted funds

Question

Quizplus · Accepted Answer

Pure endowment funds are established with the intention of keeping the principal amount intact and investing the income generated from it. The board has limited or no flexibility in using these funds as the principal is to be retained and invested in perpetuity. Therefore, option C is the correct answer. Option A (quasi-endowment) is a fund where the board has the authority to use the principal, but they choose to retain it for a specific purpose. Option B (liquid assets) refers to any assets that can be easily converted into cash. Option D (unrestricted funds) are funds that can be used by the board for any purpose.

With , Funds Given by Donors Specify That the Principal