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882. Purpose of Earmarking Funds Should not be Defeated
"Care must be taken that the purpose of earmarking is not defeated. Thus the use of earmarked funds to defray the expense of particular items in your budget has the effect of reducing, pro tanto, the amount of general contributions needed to be applied to the budget. In effect, this practice may result in there being no difference between an earmarked contribution and one not earmarked. For example: A friend may earmark a contribution for the Bahá’í International Fund. To apply this to the contributions to the Bahá’í International funds from your National Fund would be wrong unless the earmarking so specifies. Funds earmarked merely to the Bahá’í International Fund should be sent to the World Centre in addition to whatever contribution is made from the National Fund."
- (From a letter of the Universal House of Justice to a National Spiritual Assembly, January 29, 1971: Ibid.)
883. Earmarked Funds for Specific Purchases or Projects
"We have been asked to call your attention to the principle that earmarked funds such as those for the purchase or maintenance of properties, for special teaching projects, etc. should not be used for other purposes, but should be held in a special account until expended for the purpose for which they were given. This is true whether the funds are from the World Centre, from individuals or from other sources. If the project for which the funds have been given is abandoned, the contribution should be returned to the donor unless he agrees that it may be used for other purposes. Strict adherence to the principles regarding the earmarking of funds is extremely important for many reasons, including the maintaining of the confidence of the friends in matters pertaining to the Fund."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, June 21, 1979)
884. When Earmarked Contribution is Impractical or Unwise…
"1. Although any donor, Assembly or individual, has the right to specify the purpose intended for any contribution of funds or property, if, in the judgement of your National Assembly, such contribution would be impractical or unwise for you to accept, you would be under no obligation to do so.
"2. If after consultation with the donor an agreement is not reached that you deem necessary, or you are unable to have the specified donation assigned to a more practicable purpose, the contribution should be returned to the donor."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, June 22, 1980: Ibid.)
885. Proceeds from Sale of Property Purchased with Earmarked Funds Retain Same Earmarking
"As to the proceeds from the sale of Bahá’í property, if it was acquired by the use of the general funds of the Faith and no earmarking of contributions is involved, the only principle to be applied is that first stated above, namely, that the national community should not be without a Haziratu'l-Quds, endowment or Temple site, as the case may be. If the property was donated or purchased with funds earmarked for that specific purpose, the proceeds of the sale of the property retain the earmarking unless the donor has specifically provided otherwise. If the donor or donors are living, they may, of course, release the earmarking. If the donor or donors are not living, or refuse to release the earmarking, the proceeds should be used for the same purpose. If that purpose has already been fulfilled (i.e., an alternate property has already been acquired), the surplus should be used to the extent possible in a manner having regard for the original intention of the donor or donors, e.g., to maintain or improve the property. In case of doubt, the matter should be referred to the Universal House of Justice."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, August 21, 1980: Ibid.)
886. The Proper Accounting for Earmarked Funds is Very Important
"This question of the proper accounting for earmarked funds is very important. The account books of any Assembly should be designed in a way that will always clearly distinguish between earmarked funds and funds freely at the disposition of the Assembly, so that there will be no danger of the Assembly's inadvertently commingling them and spending earmarked funds for the wrong purpose."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, August 6, 1984: Ibid.)
887. Donor Has no Right to Change Earmarked Purpose Unless the Assembly Accepts the Request to Do So
"The beloved Guardian was very emphatic that contributions to Bahá’í funds, given for specified purposes, may be used only for those purposes, unless the donor consents to a change. If the Assembly cannot use the contribution for the purpose specified, it may refuse to accept it. Alternatively it could consult the donor and suggest that he release the contribution for general purposes or transfer it to another specified one, but no pressure should be exerted to force his acquiescence. On the other hand, once money has been contributed to an Assembly, it is the property of that Assembly, even though earmarked for a specific purpose, and the donor has no right to change its purpose unilaterally. The Assembly, however, may, at its own discretion, accept his request to do so."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, December 30, 1984: Ibid.)
888. The Assembly Should Try to Preserve Real Value of Funds in Its Care—Especially True of Earmarked Funds
"The Assembly is the trustee of the funds in its care, and its primary concern in investing such funds should be to try to preserve their real value. Obtaining a good income from such investments is also desirable, but is a secondary consideration and should not be sought if this would endanger the value of the principal. This is especially true in the case of earmarked funds, where the Assembly has a duty to the donor or donors to preserve the value of the fund until such time as it can be used for the designated purpose. In such a case, when the value of the currency is itself depreciating, one method of upholding the real value of the earmarked fund is to add back to the principal all income earned on it, even if the donor has not specifically earmarked the income to be earned on his contribution."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, March 19, 1985: Ibid.)
889. Often It is Better that the Friends Do not Restrict Funds
"In general, although it is permitted for the friends to earmark contributions, it is apparent that it is often better that the friends allow the Assembly to use their contributions without restricting them. Furthermore, an Assembly is by no means obligated to accept an earmarked contribution; if it does, however, it is bound to respect the earmarking."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, August 21, 1980: Ibid.)
890. Care to be Taken Not to Violate Right of Earmarking—Earmarked Contribution Should be Over and Above Assembly's Allocation to a Fund
"…care must be taken not to violate for any reason the right of the individual to earmark his contribution.
"The need, therefore, is to make clear to individual believers and Local Spiritual Assemblies how they should express their earmarkings so that the National Assembly can know whether a contribution is intended to be towards any particular segment of the national budget or to be a separate contribution merely passed through the National Assembly. In view of the Guardian's statement one should assume that, unless there is an indication to the contrary, an earmarked contribution is intended to be over and above the allocation made out of the National Fund."
- (From a letter written on behalf of the Universal House of Justice to the National Spiritual Assembly of the United States, January 18, 1968)
891. Confidentiality of Believers' Contributions, Earmarked or Otherwise, Must be Respected
"As a general rule the friends should realize that it is more consistent with the exalted standards expounded in our teachings for them at all times to offer their contributions freely, nobly and generously with the high sense of furthering the Cause of God in whatever form this may be achieved. However, if for some reason they wish to restrict the use of their contributions, or even make such donations known to others, they should not be prevented from carrying out their wish.
"In the light of the above, it would be useful to explain these guidelines to Mr. … and if he confirms his wish, there is no objection to your placing a plaque in the name of the … family in the Bahá’í Information Centre building in … which he has donated to you.
"The guidance given in the second paragraph should be conveyed to the Local Spiritual Assembly of … and they should be told that if they still wish to announce the contribution for their Hazíratu'l-Quds at the Nineteen Day Feast they should know that they are not permitted to do so without the permission of the donor, as he is entitled to the confidentiality of his contributions."
- (From a letter written on behalf of the Universal House of Justice to a National Spiritual Assembly, December 30, 1979)
