Permanently Restricted Assets

DEFINITION of 'Permanently Restricted Assets'

Assets of a not-for-profit organization that come with certain restrictions. Permanently restricted assets are any assets that are given to a not-for-profit by an outside individual or agency with restrictions on their use or purpose. Donations of such assets are not uncommon, as individuals or organizations making the donations may have certain preferences as to how the assets donated are used by the not-for-profit.

BREAKING DOWN 'Permanently Restricted Assets'

A common type of permanently restricted asset is the donation of real estate. For example, an individual or organization may donate a large chunk of real estate to a not-for-profit, such as a public university, with restrictions on the land to be only used for biological research rather than have the property resold for a capital gain at the university's discretion.

RELATED TERMS
  1. Restricted Asset

    Money or other items of value received by or promised to an organization, ...
  2. Restricted Fund

    A reserve of money that can only be used for specific purposes. ...
  3. Charitable Donation

    A gift made by an individual or an organization to a nonprofit ...
  4. The Conference Board

    A not-for-profit research organization for businesses that distributes ...
  5. Restricted Cash

    Monies earmarked for a specific purpose and therefore not available ...
  6. Permanent Current Asset

    The minimum amount of current assets a company needs to continue ...
Related Articles
  1. Term

    Understanding Not-For-Profits

    Not-for-profit organizations do not earn profits for their owners.
  2. Taxes

    How To Deduct All Of Your Charitable Donations?

    Donations made to charitable organizations can reduce your taxable income, thus your overall tax bill. But not all donations qualify to be deductable.
  3. Taxes

    1. Charitable Donations

    Tax deductions and credits aren't just for big companies. You might be surprised how many tax breaks apply to your return.
  4. Taxes

    Give Away More

    The richest people know the ropes when it comes to paying as little in taxes as possible. Find out how you can do the same.
  5. Bitcoin Tax Guide: Donations

    No good deed goes unpunished, especially when you are talking about Bitcoin donations. Odds are that if Joe made a donation to a charity in the past year, either he or the charity will have likely ...
  6. Professionals

    Appreciated Property and Non-deductible Contributions

    Appreciated Property and Non-deductible Contributions
  7. Saving and Spending

    Top Tips for Maximizing Charitable Deductions

    Charitable donations can be a great financial planning tool. Here are some ways to make the most of them.
  8. Financial Advisors

    Does that Budget Leave Room for Charitable Giving?

    Your clients want to be philanthropic, but does their financial situation allow them to afford charitable giving?
  9. Taxes

    5 Warning Signs a Charity Is a Scam

    Giving to charities and helping those in need is admirable. Here's how to ensure your good intentions and donations aren't siphoned off by scammers.
  10. Economics

    What is Restricted Cash?

    Restricted cash is cash that’s not available for a company to use immediately. It’s earmarked for some specific purpose.
RELATED FAQS
  1. Can I donate stock to charity?

    Giving stock, instead of cash, as a donation can greatly benefit both parties. You will find that most charities, hospitals, ... Read Answer >>
  2. How does revenue recognition differ between profit and non-profit companies?

    Read about some of the differences between for-profit and nonprofit, or not-for-profit, revenue recognition rules according ... Read Answer >>
  3. What are restricted shares?

    Understand what a restricted share is. Learn why a company would issue restricted shares to employees and why an employee ... Read Answer >>
  4. Are stocks real assets?

    Learn why stocks are classified as financial assets, not real assets. Understand the properties that determine whether an ... Read Answer >>
  5. Why won't my broker allow me to sell one stock and buy another on the same day?

    There are two likely reasons why a customer would be unable to buy and sell a stock in the same trading day. For simplicity's ... Read Answer >>
  6. Are current assets liquid or capital?

    Take a deeper look at liquid current assets for businesses and individuals, and learn how they differ from other types of ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center