One example of an NGO that has an endowment fund is Doctors Without Borders. Some of their endowment funds exist as restricted funds, meaning the principal must stay in the account, and they can only withdraw and use the earnings. The other funds are unrestricted, meaning the organization has...
For-profits use balance sheets, but nonprofits use a statement of financial position. On the balance sheet, assets equal liabilities plus owner's equity. Nonprofits have no owners, so the statement of financial position shows net assets instead of owner's equity. Both show assets and l...
Net assets are divided into three categories for nonprofits, designated by the person or entity making the donation. The first category is unrestricted assets, which can be spent or used for any expenses or projects the nonprofit chooses. Temporarily restricted assets may be reserved for use under...