The Xavier family contributed $300,000 to a local university to establish a scholarship fund in the name of their late mother. Scholarships will be provided from the fund earnings. This is BEST described as which kind of contribution?
A)Endowment contribution.
B)Internally restricted contribution.
C)Externally restricted contribution.
D)Unrestricted contribution.

Question

Quizplus · Accepted Answer

The contribution of $300,000 to establish a scholarship fund with earnings being used for scholarships is best described as an endowment contribution. An endowment is a gift of assets or funds that is given with the intention of generating income or growth to contribute indefinitely to an organization's operations or purposes.

The Xavier Family Contributed $300,000 to a Local University to Establish