Question: Donor restricted donations are seen on the Statement of Financial Position as net assets with donor restrictions. When the conditions required by the donor have been met, what will happen to net assets? Net assets with donor restrictions decrease and net assets without donor restrictions increases. The net assets with donor restrictions balance never changes. Net assets without donor restrictions increases; net assets with donor restrictions remains unchanged. A taxable loss is seen in net assets with donor restrictions; a taxable gain is seen in net assets without donor restrictions.