What are Unrestricted Net Assets?

Unrestricted net assets are assets contributed by donors to a nonprofit entity that have no restrictions placed on their use. This is the most sought-after type of asset, since it can be used for administrative and fundraising activities. The typical nonprofit entity structures its fund raising activities to encourage donors to make unrestricted asset donations.

Example of an Unrestricted Net Asset

A wealthy donor contributes $100,000 to Rocky Mountain Helicopter Rescue, with no requirement that the funds be used in any particular way. Rocky Mountain promptly classifies these funds as unrestricted net assets, and sends the donor a warm thank-you card.