For a permanent endowment created by a cash donation received this year, $2,000 of this year's $7,000 investment loss could be reported as decreasing TR net assets if $2,000 of the investment dividend income has not yet been spent in the donor's designated manner.

Question

Quizplus · Accepted Answer

Investment losses can decrease temporarily restricted net assets if the losses are covered by unspent investment income that was temporarily restricted by the donor.

For a Permanent Endowment Created by a Cash Donation Received