It is classified as a restricted true endowment fund for governments and non-profit organizations.
Put simply, a permanent fund may be used to generate and disburse money to those entitled to receive payments by qualification or agreement, as in the case of Alaska citizens or residents that satisfy the rules for payment from their permanent fund from State oil revenues.
For example, a fund can be classified as a permanent fund if it is being used to pay for accounting services for a perpetual endowment of a government-run cemetery or financial endowments towards a government-run library.
A common misconception is that permanent funds are required for special-purpose government entities that solely engage in business-type activities.
According to Statement 34, that special-purpose government entity needs only to report the net balance of the restricted resources.