Types of assets

There are many different types of assets that voluntary and community organisations can acquire:

1. Operational: Property, land or equipment which are utilised to undertake the day-to-day activities of an organisation. Operational assets are also commonly known as physical assets.
2. Current: All available organisational resources intended to meet current expenses, running requirements or any other purpose (e.g. grants, income, contracts, stock, human resources, rental income, loan repayments).
3. Endowment: Operational, physical or monetary assets which are held in a permanent way to generate income.
4. Trust: Assets held in trust which are intended to meet a future need (e.g. advance payment of grants, reserves). This can also include assets held in ‘trust’ on behalf of the community.

Not all types of assets can generate valuable unrestricted income. The most common assets used to generate income are property and land.

(Source: Elliott R, 2004. Barriers to Asset Transfer: Ibstock Community Enterprise Ltd)