Glossary
Gain or loss that has not become actual. It becomes actual when the asset in which there is a gain or loss is actually sold. Also called a paper gain or loss.
Gross income from any unrelated trade or business, as defined in Section 512(a) of the Code.
The part of net assets of an organization that is neither permanently restricted nor temporarily restricted by donor-imposed stipulations.
Revenues or gains from contributions that are not restricted by donors.
A loan issued and supported by the borrower's creditworthiness and not secured by corresponding collateral. As an example, a foundation having a longstanding relationship with a grantee, having done satisfactory due diligence, and having documented justification, terms and a clear repayment plan may find it appropriate to issue an unsecured loan to the nonprofit.
Funds used to start a new business or enterprise. Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. If the enterprise is successful, the return to an equity investor will likely exceed the return to a lender, given the same amount of capital provided.
An agreement established at the time of investment that allows the investor to withdraw its capital from the equity investment under certain agreed upon circumstances. In the context of PRIs, withdrawal rights are typically a function of expenditure responsibility and the requirement that the PRI recipient repays the private foundation in the event it fails to comply with the charitable terms of the investment.
The difference between an organization's assets that can be converted to cash within one year and liabilities payable within one year.
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