Exam 2 Flashcards
What is a contract? What is it not?
-a contract is the binding exchange of mutual promises
-it is not a gift
True or False
To make a contract you have an offer and it has to be accepted.
True
How long should you keep contracts for?
-for as long as the statute of limitations lasts
-Nebraska it is 5 years
What is an agent?
A person who signs the contract for the non-profit on behalf of an organization in dealing with third parties. Lawyers can be agents.
What is earned income and an example?
money received for goods and services provided by the nonprofit
-Examples: Fremont YMCA and the Omaha Zoo
General Operating Fundraising
money raised to carry out the organization’s ordinary operations
-Finds are unrestricted
Money given to the nonprofit for a particular purpose
Restricted Gift
What is an example of a restricted gift?
Donations for a scholarship that is meant to help someone who is a first generation college student.
Who is the person responsible for the financial functions of the nonprofit?
Chief Financial Officer
What is the process where the nonprofit leadership develops objectives and plans for achieving them in the long term?
Strategic Planning
What is the difference between earned income and unearned income?
Earned income is the money from goods and services (ticket sales) and unearned income is from donations and grants.
What will tell you how the money is spent?
The operating budget
What does “closing the books” mean?
Once the fiscal year ends the CFO of the nonprofit has to “close the books” which means that they make the final journaling entries for the fiscal year.
What should offer letters not say?
Offer letters should be careful not to specify a timeline for how long the position could last. This could create a contract relationship unintentionally.
What does the Fair Labor Standards Act of 1938 do?
Sets the standards for wage, overtime pay, and child labor. FLSA applies to all employers to pa minimum wage plus overtime pay of one and a half times the regular rate of pay for each hour worked in excess of 40 hours per week.
