Non-Profit
Endowment Annual Spending Distribution to Operations
Transferring the board-approved annual spending amount from the endowment to the operating fund.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash (Operating — Unrestricted) | Asset (+) | 40,000.00 | - |
| Cash (Endowment — Restricted) | Asset (-) | - | 40,000.00 |
| Net Assets Released (With Restrictions) | Equity (-) | 40,000.00 | - |
| Net Assets Released (Without Restrictions) | Equity (+) | - | 40,000.00 |
💡 Accountant's Note
The board authorizes an annual spending rate (typically 4-5% of endowment value). The transfer moves cash from the restricted endowment pool to the unrestricted operating account and releases the net asset restriction.
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