Lesson 2 – What are the categories of net assets for nonprofits?

In order to be compliant with Generally Accepted Accounting Principles (GAAP) and ASU 2016-14 and Financial Accounting Standard Board (FASB), the accounting standards for nonprofits, a nonprofit’s funds must be grouped into two categories of net assets:

  • Net Assets With Donor Restrictions
  • Net Assets Without Donor Restrictions