ABSTRACT
You may have found others when you looked at examples in earlier activities.
Some of these funds might be of a fixed amount, say where the founders of a charity gave it a fixed amount as its founder’s fund. Some may be permanent in nature but can increase when certain payments are received by the organization, such as an endowment fund or a bursary reserve. Some may be set up with a particular objective in mind and be increased with surpluses and reduced with deficits until the objective is fulfilled, such as a building fund. Some may be required by the organization’s constitution or by law, as a way of showing the amount of specific inflows of cash to the organization over time, such as a life fund in a life insurer. And some may simply be the equivalent of the profit and loss reserve in a business – the accumulated reserve.
