2.01 NOT-FOR-PROFIT OVERVIEW Flashcards
Contribution Revenue
FV of amount received - FV of resources given up
Contributions of property are recorded at
FV
Contributions of services are recognized at FV if
- non-financial asset is created or enhanced
- requires person with specialized skills in another field (accountant, lawyer, doctor)
Contributions are conditional when
- there is a barrier to overcome
- donor has right to return assets
Revenue from conditional contributions is recognized
when the future condition is met
Conditional Pledges
PROMISES that depend on a specific event occurring in the future; not recognized until uncertain event has occurred
Agent/Trustee
acts as an intermediary for collecting donations
Equity/Debt Investments are
recognized at the FV on donation date
Type of endowment that cannot be invested
Permanent Endowment
What is excluded from Gross Revenue for Hospitals
Charity Care
What is excluded from Gross Revenue for Colleges
Tuition Refunds
Net Patient Service Revenue
Gross Patient Service Revenue - Discounts - Contractual Adj - Implicit Price Concessions
Net Tuition Revenue
Gross Tuition Revenue - Scholarship Allowances - Uncollectible Amounts
Do not recognize art/artifacts/antiques if
the npo uses the donated item for display or research purposes only
AND
the organization cares for it themselves
AND
if sold the proceeds are either reinvested in other collectible items OR used for the direct care of existing collections
Statement of Functional Expenses can be presented as
a separate statement, on statement of activities, or in the notes
Pledges are recognized if they are
unconditional
Variance Power is
the unilateral power to redirect the transferred assets to another beneficiary (they can override the donor’s instructions without approval)
A conditional grant is recorded as a
refundable advance
when the reporting entity acts as an agent/trustee a _____ is recorded
liability
a contribution from a resource provider is reported as contribution revenue if
the recipient organization is granted variance power by the resource provider or the recipient organization and the beneficiary are financially interrelated organizations
an arrangement where a donor makes an initial gift to a trust or directly to the NPO, in which the NPO has a beneficial interest but is not the sole beneficiary
Split-Interest Agreement
exchange revenue
fv of resources received - fv of resources surrendered
