During our August nonprofit workshop, our nonprofit team shared the latest in accounting and tax updates, as well as insights from AICPA’s recently revised Audit & Accounting Guide for Not-for-Profit Entities. We posed various questions during our workshop and over the next few blog postings, we will share the answers to those questions.

Q. What happens to a permanent endowment if the donor stipulates that the gift principal is to be held in a particular investment security?

A. The gains and losses on the invested endowment funds are subject to the same permanent restriction unless the donor specifies otherwise. The permanent endowment will therefore move up and down depending on market conditions.

Q. Can permanent restrictions be changed?

A. Check out our next ‘Exploring the World of Contributions ’ blog posting for the answer…

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Donella Wilson

Donella Wilson, CPA, leads GHJ’s Nonprofit Practice and is also President and Chief Philanthropy Officer of GHJ Foundation, GHJ’s vehicle for purposeful and proactive giving to the community. A leader in both the nonprofit and accounting communities, Donella was named a finalist in the 2021 Los…Learn More