For a permanent endowment created by a cash donation, subsequent investment gains that restore the fair value of the endowment fund investments to the donor's stipulated amount are reported as increases in UR net assets.

Question

Quizplus · Accepted Answer

Investment gains that restore the fair value of the endowment fund investments to the donor's stipulated amount are considered to be part of the endowment and are thus reported as increases in unrestricted (UR) net assets, as they help maintain the endowment's purchasing power over time.

For a Permanent Endowment Created by a Cash Donation, Subsequent