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Elim Lutheran Church Gift and Restricted Assets Policy
Approved by the Leadership Team on June 18, 2026 Purpose Elim welcomes and appreciates financial gifts and donations. This policy describes the standards developed for classifying and administering gifts and for financial controls for restricted assets. The intent of these standards is to align with Uniform Prudent Management of Institutional Funds Act and with Generally Accepted Accounting Principles. Definitions “Asset” refers to something with economic value (current or future value), e.g., real estate, stocks, bonds, cash/equivalents. Unrestricted Assets: are available for any legitimate purpose within Elim without legal restriction. These assets may be designated by the Leadership Team or congregation and are reported as “net assets without donor restrictions.” Board-designated Assets: are a subset of unrestricted assets designated by the LT for a specific purpose; that purpose may be changed by the LT. Congregation-supervised Assets: are a subset of unrestricted assets controlled by the congregation, not the LT. Such assets typically relate to real property (sale, purchase); the congregation must authorize any specific actions by the LT related to these assets. Restricted Assets: are restricted by the donor (or legal representative) – either by restricting the purpose of the asset or the time the asset is to be used. These assets will be maintained in distinct files to ensure they are available for the purpose designated for that use. They are reported as “net assets with donor restrictions.” Contributions (“Gifts”): are received by Elim to support its mission without any reciprocal financial benefit to the contributor of that gift. Gifts may be restricted or unrestricted. Revenue: all other assets received by Elim. These assets are always unrestricted. Classification Process: The following metric will be used to classify gifts. Restricted assets must have both statements true:
the donor’s intended purpose for the donation is clearly communicated in writing (e.g., check memo) but does not directly stipulate that the gift is restricted solely to that purpose. Note: Donor restrictions will be accepted only when they are consistent with Elim’s mission, are administratively feasible, and are trackable within Elim’s accounting system. If they are not, Elim must either explicitly accept the restricted terms in writing or decline to receive the contribution. Variance and Reallocation Provision: If a specified purpose becomes fully funded, is no longer necessary, or is incapable of being fulfilled within a reasonable time period (e.g., 12 months), Elim may redirect that restricted fund to a fund with a similar or related purpose within the same ministry area. Donor Notification and Disclosure: Elim shall disclose that donor-restricted gifts/contributions are accepted subject to the variance and reallocation provision stated above. The following statement shall be used on every giving venue: Contributions designated for a specific purpose, will be used for that purpose when feasible. If that purpose is no longer needed, Elim may redirect the funds to a similar purpose consistent with its mission. Unless otherwise agreed in writing, all contributions to Elim are accepted subject to this policy. Asset use: When paying/meeting financial obligations, assets will be used in the following order:
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