Notes on Net Assets. The following items are taken from the financial statements of the Kids Clubs of America for the years ending December 31, 2011, and 2010, with related notes.

Required
a. Explain what the term board-designated, unrestricted net assets means. What does the board plan to do with these net assets? Can board members change their minds in future years?
b. Describe the types of restrictions that donors have placed on net assets. How much of those gifts are restricted for a period of time as opposed to purpose?
c. If an unexpected need arises, can the board of directors decide to spend donor-restricted funds in ways other than the donor indicated when the contribution wasmade?

KIDS CLUBS OF AMERICA Statement of Financial Position (selected items) For the Years Ended December 31, 2011 and 2010 2011 2010 Net assets: Unrestricted Undesignated Board designated (Note 11) Temporarily restricted (Note 9) Permanently restricted (Note 9) $ 878,901 882,912 66,540,051 57,479,525 74,789,227 18,675,644 47,668,565 16,183,950 Total net assets $160,883,823 $122,214,952 Note 9: Restricted Net Assets Temporarily restricted net assets at December 31, 2011 and 2010, are available for the following purposes or periods: 2011 2010 Gifts and other unexpended revenues available for on-site $ 4469,136 $ 5,266,823 assistance to member clubs and establishment of new clubs Gifts and other unexpended revenues available for leadership training, development, and support of youth programs Gifts available for future periods 35,864,678 34,455,413 27,915,087 14,486,655 $47,668,565 $74,789,227 Permanenily restricted net assets consist of the following at December 31, 2011 and 2010: $16,183,950 Endowments $18,675,644 Note 11: Unrestricted Net Assets Board Designated Board-designated net assets consist of the following at December 31, 2011 and 2010: 2011 2010 Reserve fund (functioning as quasi-endowment) S44,762,573 12,051,815 9,010,568 $39,203,909 10,678,020 6,924,643 Gains on endowments Land buildings, and equipment Other board designated 715.095 72,953 $66,540,051 $57,479,525