Managing Net Assets Released from Restrictions in Nonprofits
As nonprofits, we are required to show our net assets “with donor restrictions” (restricted) separately from those “without donor restrictions” (unrestricted). These further distinctions are not required by GAAP (generally accepted accounting principles), but they provide more clarity for management and internal understanding of net assets composition and liquidity. Accurate journal entries are fundamental to …
Managing Net Assets Released from Restrictions in Nonprofits Read More »