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Net Assets RollforwardWith and Without Donor Restrictions

Does it tie out, and if not, where is the difference?

Beginning balances, revenue, expenses and releases from restriction rolled to ending net assets without and with donor restrictions.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Total net assets, end of year
$1,390,000
Without plus with donor restrictions
Net assets without donor restrictions, end
$920,000
Form 990 Part X, line 27
Net assets with donor restrictions, end
$470,000
Form 990 Part X, line 28
Drawn to one scale
Net assets without donor restrictions, end$920,000
Net assets with donor restrictions, end$470,000
Total net assets, end of year$1,390,000
Change in net assets without donor restrictions$20,000
Change in net assets with donor restrictions$70,000
Change in total net assets$90,000
All results
MeasureResult
Net assets without donor restrictions, end
Form 990 Part X, line 27
$920,000
Net assets with donor restrictions, end
Form 990 Part X, line 28
$470,000
Total net assets, end of year$1,390,000
Change in net assets without donor restrictions$20,000
Change in net assets with donor restrictions$70,000
Change in total net assets$90,000
Release check
Releases and restricted losses do not exceed restricted net assets available
How this was worked out
Work shownrecomputed as you type
Without restrictions, end = beginning + unrestricted revenue + releases - expenses
With restrictions, end = beginning + restricted contributions and gains - releases - restricted losses
Releases move between the columns and do not change total net assets

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Without restrictions, end = beginning + unrestricted revenue + releases - expenses
  • With restrictions, end = beginning + restricted contributions and gains - releases - restricted losses
  • Releases move between the columns and do not change total net assets

How it works

Not-for-profit statements of activities show two classes of net assets. Form 990 Part X reports them on line 27 (without donor restrictions, including any board designations) and line 28 (with donor restrictions: time restrictions, purpose restrictions, or both, and amounts to be held in perpetuity).

When a restriction is met, the amount moves from the restricted column to the unrestricted column as a release. Expenses are reported in the unrestricted column, so a release is what funds them. Run the release calculator in this set first if you need to work out the release amount.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Are board-designated funds restricted?

No. Form 990 line 27 includes all funds without donor-imposed restrictions, regardless of board designations or appropriations.

Why does total net assets not move when I change the release?

A release reclassifies an amount between the two classes. It is not revenue or expense of the organization as a whole.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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