Net Asset are classified based on the existence or absence of donor-imposed restrictions, resources are classified into two categories: without donor restrictions and with donor restrictions.
Net assets without donor restrictions are free of donor-imposed restrictions. All revenues, gains, and losses that are not restricted by the donor are included in this classification. All expenses are reported as decreases in net assets without donor restrictions.
Net assets with donor restrictions are subject to donor-imposed restrictions that will be met either by actions of the Society or the passage of time. These net assets include donor restricted endowments and unconditional pledges. Generally, the donor-imposed restrictions of these assets permit the Society to use all or part of the income earned (interest and dividend income) on the related investments for specific purposes; however, investment gains and losses are reinvested into the corpus.
At December 31, 2020, the Society had net assets totaling approximately $1.4 billion. More than 58% of these net assets are donor restricted.
- Net Assets without Donor Restrictions: $589 million
- Net Assets with Donor Restrictions: $841 million
Net Assets Without Donor Restrictions: $589 million
As of December 31, 2020 the Society had $589 million in net assets without donor restrictions. These net assets are intended to protect the Society’s long-term viability, particularly in the event of a sustained economic downturn, uninsured losses and/or poor capital market performance.
The Society maintains a separate Member Insurance Program, American Chemical Society Insurance Trust (the Insurance Trust), which provides members with insurance coverage through several group insurance policies. The Insurance Trust has accumulated $36 million in net assets without donor restrictions. The Board of Trustees of the Insurance Trust has determined that these funds will be used for the benefit of participants in the ACS Member Insurance Plans, and to protect the program against adverse claims experience.
|Insurance Trust||$36 million|
|Board-Designated – ACS Programs||$3 million|
|Other Net Assets||$550 million|
|Net Assets without Donor Restrictions||$589 million|
Net Assets with Donor Restrictions: $841 million
The Society has approximately $841 million in net assets with donor restrictions, which represents donations received in support of specific Society programs.
|ACS Petroleum Research Fund||$690 million|
|ACS Programs||$151 million|
|Net Assets with Donor Restrictions||$841 million|
The ACS Petroleum Research Fund (PRF) accounts for $690 million of the total. The PRF was established as an endowed fund October 25, 2000 as a result of The Agreement of Transfer of Trust (the Agreement) between the Society and Morgan Guaranty Trust Company of New York, approved by the Attorney General for the State of New York, and ordered by the Supreme Court of New York. The fund generates interest and dividends which are used to provide grants to support education and research in the petroleum field.
ACS Programs make up the remaining balance of Net Assets with Donor Restrictions with $151 million in restricted assets. The majority of these restricted net assets reside in the Education and Membership programs.