Education
Underwater Endowment Adjustment
Reflecting a loss when an endowment's fair value drops below the donor's original gift (historic dollar value).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Unrealized Loss on Investments | Expense (+) | 3,000.00 | - |
| Endowment Investments | Asset (-) | - | 3,000.00 |
💡 Accountant's Note
If the stock market crashes and an endowment is worth less than what the donor gave (the 'corpus'), it is called 'underwater.' Legal rules (UPMIFA) dictate how much you can still spend.
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