Funds separate financial transactions by purpose.
The difference between assets and liabilities is called net assets and represents the synod's financial net worth. Gifts and memorials received from individuals and congregations support wide areas of the synod's work. Gifts designated or restricted by the donor are placed into the appropriate fund to be spent according to the donor's wishes. Such gifts are classified as temporarily restricted until they are spent. Some donors want their gifts held and only the income generated by the gift to be spent.