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CRUT'S and Investment Income

  • 1.  CRUT'S and Investment Income

    Posted 07-09-2018 12:11 PM

    We have had Irrevocable Charitable Remainder Trusts for many years.  These investments have been recorded on our balance sheets as temporary restricted investments.  The investors/donors have gotten their fixed percentage payments from these investments as well.  When we record the investment activity, we increase the investments and we record the revenue in the temp restricted accounts we have set up.  I get confused, because we normally record temporarily fund investment income as unrestricted.  Are their certain rules set up that doesn't allow us to do the same for these annuities?  When we no longer have to make the quarterly payments and the investments turn over to us.  I understand that we will take the cash from the investment and record it as a temp rest fund to use for the purpose of the donors wishes.  What happens to the money that has increased their fund balances over the many years we have held them.  Do they increase the fund with the investment cash for the intended purpose?  Do we then make it unrestricted for any use we intend?



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    Thomas Schwanebeck
    schwanebeck@msoe.edu
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