Permanently Restricted Funds

Permanently Restricted Funds

In a non-profit's year-end financial statement, money that may not be spent at any time except for specified purposes. Permanently restricted funds are expected to last over the long term. See also: Temporarily restricted funds.
References in periodicals archive ?
At December 31, 2017, temporarily restricted net assets consist of the following: Scholarship awards $ 1,242,337 Hydrology research 194,359 Remote sensing awards 116,753 Lecture series awards 57,198 Student travel awards 109,239 Student paper awards 8,430 Building repair 30,000 Cumulative gains on permanently restricted funds 335,058 Charitable gift annuities 314,951 $ 2,408,325 Note 14--Permanently Restricted Net Assets Permanently restricted net assets include net assets subject to donor-imposed stipulations that they be maintained permanently by the Society.
Figure 1 is an example of disclosure of time, purpose and perpetuity restrictions on net assets with donor restrictions: Ouasi-endowments are funds earmarked by the board rather than by donors to act like permanently restricted funds from which income is available lor general operations (e.g., a "rainy day fund") or certain specific purposes.
Under the UPMIFA, nonprofits may expend principal from permanently restricted endowment funds--but if permanently restricted funds may be expended, then they are not actually permanently restricted.
On the other hand, GASB requires even more separation between activity types, including specific groupings for budget activity (unrestricted current funds), temporarily restricted gift funds (restricted current funds), nonoperating funds (primarily state/governmental appropriations), plant/facility/ capital activity, loan fund activity (public debt issuance activity), and the endowment or permanently restricted funds.