This course provides a detailed examination of how nonprofit organizations report, manage, and disclose endowment funds in accordance with current accounting standards and legal frameworks. It explains the classification of net assets as donor-restricted or board-designated and highlights the reporting distinctions introduced under ASU 2016-14. Key concepts include the presentation of net assets, investment return accounting, and the treatment of underwater endowments-funds whose market value falls below the required level. The chapter also introduces the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as a governing framework for nonprofit endowment practices, emphasizing its role in determining prudent spending and disclosure strategies. Special attention is given to pooled investment structures, financial statement presentation, and required supplemental disclosures that ensure transparency and regulatory compliance in the nonprofit sector.