Restricted Funds

Restricted Funds Management procedures were implemented in order to facilitate compliance with donor intent and to promote practices that result in the greatest flexibility in long-term financial planning and utilization for the College. The College is legally obligated to honor donor directives regarding the use of their gifts. 

Restricted Funds Policies

Policy Highlights

  • Distributions from restricted endowments must be used for purposes consistent with donor intentions and should be the first source of funding to support programs and activities meeting the restriction.

  • Unrestricted resources may be applied to such programs after distributions restricted to those purposes have been fully exhausted.

  • If restrictions cannot be met, distributions must be held in reserve and the donor shall be contacted in the aim of securing a revised agreement for broader purposes. If the donor is no longer living, the College shall seek advice from the New Hampshire Attorney General's Office (the agent for enforcement of such gifts).

Read the full Restricted Funds Management Policy.

Restricted Funds Management Categories

To aid in the transacting and reporting of restricted funds, a classification system has been created to categorize specific endowment funds based on their degree of restriction from the donors. The ranking system has four levels, with Category 1 being least restrictive and Category 4 being most restrictive.

Category 1

  • Unrestricted to Dartmouth College or to one of the professional schools and used to support general purposes.
  • Examples of Terms: For the Medical School, To support Dartmouth College

Category 2

  • Broadly restricted to a division, department or general needs of a large program.
  • Examples of Terms: For the benefit of the Library, to support the Chemistry Department, for undergraduate financial aid, in support of athletics, for faculty salaries in Humanities

Category 3

  • Restricted to items, programs or activities within a division, department or general large program.
  • Examples of Terms: For student counseling services, scholarships for undergraduate students from Ohio, for the purchase of rare books, programs in international economics

Category 4

  • Restricted to very specific items, programs or activities.
  • Examples of Terms: For Forensic Union team travel to the Freshman Nationals, acquisitions of contemporary works of art in three-dimensions with preference given to works done in cast glass, ceramic and bronze

Additional informaion on these categories and the management of these funds can be found in the Restricted Funds Management Tutorial.

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