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Lisa S
Level 1

Understanding unrestricted net assets

Why are unrestricted net assets generated automatically in Quickbooks and what do I do with them?

1 Comment 1
BettyJaneB
QuickBooks Team

Understanding unrestricted net assets

Hello, @Lisa S.

 

I've come to help share some insights about the unrestricted net assets that are showing up on your account. Let's get this straighten out for you.

 

If you're are having a non-profit type of organization, the equity section of the Balance Sheet is subdivided into Restricted Net Assets, Temporarily Restricted Net Assets, and Unrestricted Net Assets. The sum of these three is the total for Net Assets.

 

The unrestricted net assets are donations that have no strings attached. These assets may be used by your organization for general expenses or any legitimate expenditure. 

 

Most donations are unrestricted net assets. However, your donor may choose to classify the donation as temporarily restricted net assets or even permanently restricted net assets, thus establishing rules for the use of the donation.

 

That being said, to ensure the best course of action for your organization, I'd recommend reaching out to your accountant.

 

Please let me know how the consultation goes. I'll be around to help if there's anything else you need. More power to your business!

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