Overview of UPMIFA accounting for endowments

Looking for a 400 word summary of how to account for permanent endowments?

Colette Kamps, CPA, has a great overview in her post Underwater with UPMIFA, at the Nonprofit GPS blog.

Highlight of the summary:

So at the end of the third year, the endowment balance is at $485,000.  Permanently restricted net assets would still remain at $500,000 (this amount doesn’t change).  The underwater portion of $15,000 would “sit” as a debit in unrestricted net assets until it is subsequently recovered with market gains. 

Check it out if you want to ‘get’ UPMIFA in just two minutes.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: