If the amount is negative, it means expenses exceeded revenues, and net assets were reduced. An increase in assets, of course, means the charity is putting away money that may be used to meet future needs or to finance capital projects like the purchase of a building. This shows the excess of assets over liabilities at the end of the fiscal year. Negative net assets means liabilities exceed assets. The information is provided for donors who want to judge an organization's need for funds by the amount of resources it already has.
Some organizations allocate net assets to particular funds, as follows.
These are funds on which there are no restrictions placed by donors with regard to how or when they can be spent. Unrestricted assets are not necessarily immediately available. For example unrestricted assets can include holdings of real estate or other non-liquid assets. But unless restrictions are placed by donors, the assets are considered unrestricted. Temporarily restricted funds.