Exam 2 Flashcards
What is Founder’s Syndrome? Why is it problematic?
When the founder of an organization tries to stay in control after it has grown. It is problematic because nonprofits are not owned by a single person.
What is UBIT?
Unrelated Business Income Tax- federal tax on profits earned by a nonprofit that are not related to the mission.
The form 990 must be filed every _____.
Year.
__________ is a deficiency/combination of deficiencies in internal controls leading to misstatements in the financial statements that are not prevented/detected.
Material Weakness.
What is Embezzlement?
The misuse or theft of funds belonging to one’s employer.
What do Internal Controls help with? What are the two types?
They help to minimize fraud and increase trust in the books’ reporting. The two types are preventative and detective controls.
Who is responsible for the financial functions of a nonprofit?
The Chief Financial Officer/CFO.
What does a work need in able to be copyrighted?
Must be a creative work made by a person, must be something original, and must be tangible medium of expression.
What do you have to obtain in order to use an already copyrighted work?
A License.
Who works with a nonprofit to confirm the validity of the organization’s financial statements?
An external auditor.
