Non-Profit

Release of Donor Restriction Matching Depreciation

Releasing a portion of a restricted capital gift to match the annual depreciation of the purchased asset.

Account NameTypeDebit ($)Credit ($)
Net Assets with Donor RestrictionsEquity (-)1,000.00-
Net Assets without Donor RestrictionsEquity (+)-1,000.00

💡 Accountant's Note

If a donor gives $10k for a machine with a 10-year life, you release $1k each year as 'Unrestricted' to offset the $1k depreciation expense on the Statement of Activities.

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