Changes

'''Trust funds''' are accounts for [[receipts]] earmarked for specific purposes and for the expenditure of these receipts.

'''Trust funds''' are accounts for [[receipts]] earmarked for specific purposes and for the expenditure of these receipts.

An example of a trust fund is a bequest left by a wealthy benefactor, whereby a parcel of land is donated to a local government for use as a park, and an endowment created to maintain it.

An example of a trust fund is a bequest left by a wealthy benefactor, whereby an endowment is left to maintain local parks.

Failure to use a trust fund for its designated purpose can result in the government being required to reimburse the fund for the unauthorized expenditure.  In the second example above, if the local government decides to no longer operate the park (for example, if the surrounding area is now commercial development), it may be required to return the park and the endowment to the donor or his/her heirs.

Failure to use a trust fund for its designated purpose can result in the government being required to reimburse the fund for the unauthorized expenditure.  In extreme cases, the fund may be required to return the fund in its entirety to the donor or his/her heirs.

[[Category:Budget Terms]]

[[Category:Budget Terms]]