Why are new gift cost centers needed?
New cost centers were created for (at least) two reasons: • Few if any cost center numbers were available for new endowments and some other types of accounts. • Gifts are considered “expendable restricted” funds. By putting them in a new 9xxxxxx cost center, we can classify all gifts as expendable restricted. In the past, cost centers’ carryforwards were manually computed to identify the gift carryforward (which is restricted) and regular carryforward (which is unrestricted). The new cost centers will more clearly identify the expendable restricted funds for departments and for financial reporting purposes.
