What are Net Assets Released from Restrictions?

Net assets released from restrictions refers to those restricted assets that have been re-classified as unrestricted net assets. This transfer occurs because the original donor-imposed restrictions associated with certain assets have been satisfied. The outcome is greater availability of funding for the alternative activities of a nonprofit entity.

Presentation of Net Assets Released from Restrictions

The aggregate amount of net assets released from restrictions appears in a nonprofit entity’s statement of activities. It is highlighted in the following exhibit.