Notes on Net Assets. The following items are taken from the financial statements of the Kids Clubs of America for the years ending December 31, 2011,
and 2010, with related notes.
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KIDS CLUBS OF AMERICA Statement of Financial Position (selected items) For the Years Ended December 31, 2011 and 2010 |
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2011 |
2010 |
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Net assets: |
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Unrestricted |
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|
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Undesignated |
$ 878,901 |
$ 882,912 |
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Board designated (Note 11) |
66,540,051 |
57,479,525 |
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Temporarily restricted (Note 9) |
74,789,227 |
47,668,565 |
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Permanently restricted (Note 9) |
18,675,644 |
16,183,950 |
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Total net assets |
$160,883,823 |
$122,214,952 |
Required
a. Explain what the term board designated, unrestricted net assets mean. What does the board plan to do with these net assets? Can board members change their minds in future years?
b. Describe the types of restrictions that donors have placed on net assets. How much of those gifts are restricted for a period of time as opposed to purpose?
c. If an unexpected need arises, can the board of directors decide to spend donor restricted funds in ways other than the donor indicated when the contribution was made?