10 May WHAT ARE THREE DIFFERENT SCENARIOS (USING THREE DIFFERENT FUNDS) IN WHICH THIS IS POSSIBLE?
Question:The chief administrative officer of a not-for-profit hospital Vera Thomas is attempting to find resources to add a new wing to the hospital. For the past several years many patients have been turned away because of a lack of space. The hospital has a large endowment but all earnings from these funds are restricted to various operating purposes; for example providing continuing education for nurses and maintaining the parking lot. Thomas approaches you and asks whether a recently received gift from T.W. Wealthy could be used to begin expansion. Wealthy donated $1 million to the hospital in his deceased wife’s name. She recently died from cancer and in her memory Wealthy established a cancer research fund. Respond to each of the following questions:How would you respond to Ms. Thomas?Suppose the hospital has a foundation that supports the operations of the hospital. How does that change your response to Ms. Thomas?Suppose the hospital has received resources to add the new wing to the hospital. What are three different scenarios (using three different funds) in which this is possible? What are the three different funds that are used? Be specific.
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