The Fund Source segment expands upon the five Fund Class categories, specifying the exact nature of the source of funds, for example, specific reserves, designated funds, endowments, loans, etc.
Designated Funds are resources received by the university that have no limitations or stipulations placed on them by external agencies or donors but are internally restricted by the university for a specific purpose. Designated Funds roll up to the Unrestricted net assets section in the financial statements, so care must be taken to ensure they are not legally restricted. A Designated Fund Source is not required for all such earmarked instances if an organization string and/or program/activity segment can be used.