Nonprofits split net assets into two groups:

• Without donor restrictions: available for any purpose.
• With donor restrictions: limited by the donor or funder to a specific purpose or time period.

When the restriction is met, the money is released to “without donor restrictions.” Harbor Oak’s $25,000 Community Foundation Grant was restricted to building the playground. It shows as restricted at October 31 and is released once the playground is placed in service in November.