Manage the Decapitalization of a Fundraising Purpose

When the market value of an endowment fundraising purpose falls below the book value, you can decapitalize the purpose. Your organization determines how much below the book value that the market value must fall before you decapitalize. After your organization approves the decapitalization of a fundraising purpose, you can decapitalize all or some of the purpose value to indicate that your organization should not disburse revenue from the purpose.

When you decapitalize a purpose, you enter information about the approval of the decapitalization, the amount to decapitalize, the designation into which to transfer the amount, and the rationale for the decapitalization.

Note: To view information about the decapitalized amounts of a fundraising purpose, you can generate the Decapitalization Fund report. On the purpose record, select Fund decapitalization under Reports. For information about this report, see Fund Decapitalization Report.

After you decapitalize a purpose, you can edit or delete the decapitalization as necessary.