The Safe Place's solicitation states the following: help prevent violence and victimization of children in our community, we intend to “To give the Safe Place $xxx to support its next year’s activities. (This is an estimate for budgetary purposes only.)” Donor responses to that solicitation would represent intentions to give, rather than promises to give. However, if the Safe Place changed the wording of its solicitation to the following, donor responses would constitute unconditional promises to give: help prevent violence and victimization of children in our community, we agree to “To give the Safe Place $ xxx to support its next year’s activities.” In that second example, the unconditional promise be recognized as a temporarily restricted contribution to reflect the donor-imposed time restriction for the subsequent year's operating activities. Example 5 - Intention to give Big Bucks Foundation has awarded a three-year grant of $250,000 per year to the Middle America Symphony. The award notification states: Big Foundation agrees to award Middle America Symphony $250,000 per “The year during 2012, 2013, and 2014. The Big Bucks Foundation reserves the right to rescind this award at any time and this award is not legally binding. Although The Big Bucks Foundation intends to honor this award, Middle America Symphony should consider this award notification for budgetary purposes only.” The notification in this example would be an intention to give since the donor retains the right to rescind the award.
The Safe Place's solicitation states the following: “To help prevent violence and victimization of children in our community, we intend to give the Safe Place $xxx to support its next year’s activities. (This is an estimate for budgetary purposes only.)” Donor responses to that solicitation would represent intentions to give, rather than promises to give. However, if the Safe Place changed the wording of its solicitation to the following, donor responses would constitute unconditional promises to give: “To help prevent violence and victimization of children in our community, we agree to give the Safe Place $ xxx to support its next year’s activities.” In that second example, the unconditional promise be recognized as a temporarily restricted contribution to reflect the donor-imposed time restriction for the subsequent year's operating activities. Example 5 - Intention to give Big Bucks Foundation has awarded a three-year grant of $250,000 per year to the Middle America Symphony. The award notification states: “The Big Foundation agrees to award Middle America Symphony $250,000 per year during 2012, 2013, and 2014. The Big Bucks Foundation reserves the right to rescind this award at any time and this award is not legally binding. Although The Big Bucks Foundation intends to honor this award, Middle America Symphony should consider this award notification for budgetary purposes only.” The notification in this example would be an intention to give since the donor retains the right to rescind the award.
donor_contributions.docx