Permanently Restricted Net Assets

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Permanently Restricted Net Assets

Cash or other assets that are not needed to pay liabilities but that still must never be spent freely. Permanently restricted net assets may be earmarked for a specific purpose; alternately, law or regulation may require the permanent restriction of some net assets. See also: Temporarily Restricted Net Assets.
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The operating, cash reserve, facilities and endowment columns were all collapsed into new categories--unrestricted, temp restricted and permanently restricted assets became the new terminology.
Permanently restricted assets are most often related to a permanent endowment which requires that the original investment be maintained to provide a permanent source of income to the entity.
Instead, the presentation should include all activity by three categories: unrestricted, temporarily restricted and permanently restricted assets.