FAR Chapter 6 NFP

Question 1

What makes NFP organizations considered financial interrelated organizations?

Answer 1

Is able to both influence the operating and financial decisions of the other and has an ongoing economic interest in the net assets of the other

Question 2

What is the difference between conditional pledge and unconditional pledge?

Answer 2

Unconditional are binding and recorded right away. Multiple years are recorded at present value.

Conditional are not recognized until the occurrence of a specific event bc it has to wait for the condition if cash is received it goes to a refunable advanced liability account

Question 3

What are examples of support service?

Answer 3

Fundraising, membership development , general and admin

Question 4

What are examples of program services?

Answer 4

Education, teachers salaries

Question 5

How to calculate contribution per member?

Answer 5

Member dues mines value that the nfp provides

Question 6

What is the difference between supporting and program services?

Answer 6

Program directly related to mission of org and supporting does not directly related to the mission of the organization