What it is
Two lines on a nonprofit’s statements get the most attention: net assets without donor restrictions and net assets with donor restrictions. The movement between them, releases when a purpose is met or time passes, is where classification errors hide. This workbook rolls both classes forward from a fund-level schedule so each release can be traced.
List each restricted fund with its opening balance, contributions, investment return and release. The Rollforward tab shows the two classes side by side, with a release as an equal and opposite movement, and ties the closing balances to the statements. The Endowment tab compares fair value with the original gifts and the appropriation with the spending policy.
When to use it
- On every nonprofit audit, as the support for the net asset classes and the release journal entries.
- When the organization holds donor-restricted endowments and the market value has fallen.
- When a grant or gift has purpose and time conditions that need to be tracked separately.
What’s inside
- Funds tab: 30 rows with opening, contributions, return, release and closing, and a flag for over-release
- Rollforward tab: both net asset classes, releases by type and four OK / Check ties
- Endowment tab: historic dollar value, fair value, deficiency and appropriation against policy
- Legend with the classification points to cover in the audit file
Standard cited
This template follows ASC 958-205. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Why do releases net to zero?
A release is an increase in net assets without donor restrictions and an equal decrease in net assets with donor restrictions, so total net assets do not change. The workbook shows this as a tie-out.
Where does an underwater endowment deficiency go?
Under the nonprofit reporting guidance, a deficiency below the original gift amount is reported in net assets with donor restrictions, with disclosure. Confirm the policy and the state law that governs the endowment before concluding.
What about conditional contributions?
A gift with a barrier and a right of return or release is a conditional contribution and is not recognized as revenue until the condition is met. Keep those off this schedule until then and track them separately.
Related templates
- Audit Program: Nonprofit Organization
- Nonprofit Functional Expense Allocation Workbook
- Equity Rollforward Template (Corporation and LLC)
- Disclosure Checklist: Not-for-Profit Entities (ASC 958)
Last updated 11/05/2026. All free templates.