What is a Donor-Imposed Condition?

A donor-imposed condition is a future event or an uncertain event that can result in the return of a donated asset or the elimination of an obligation to transfer an asset.

Examples of Donor-Imposed Conditions

As an example of a donor-imposed condition, a donor stipulates that a $1 million donation must be used for an upgrade to a museum. If the upgrade is not done, then the funds are to be returned. As another example, a donor contributes $5 million, on the condition that the receiving nonprofit finds other donors to match the funds. Any funds not matched must be returned to the donor.