Total conditional pledges receivable 4. The gift is considered restricted if the purpose is more specific than the broad limits associated with the stated purpose of the organization or if the funds cannot be expended until a time period specified by the donor. Restrictions by the board of directors do not affect these classifications. These are not restrictions. Instead they are board designated assets.
Restrictions differ from conditions.
Restrictions concern the use of the asset after contribution. Conditions are necessary characteristics that must exist before a contribution takes place. Restricted contributions are recognized as revenue when pledged. Unrestricted - no specifications concerning use 2. Permanently restricted - relates to permanent endowments and revolving loan funds or donations of land or art collections.