Non Profit Flashcards
Establishment of an Endowment
recognize restricted contribution revenue. The NPO includes an asset in its balance sheet. When a beneficiary has an unconditional right to specific cash flows from a trust, the beneficiary interest is measured and subsequently remeasured at fair value, using a valuation technique
Reporting of Outstanding Encumbrances
equity section of the balance sheet.
Required Financial Statements
a Statement of Financial Position, a Statement of Activities, and a Statement of Cash Flows.
Pledge Recording
in the period they are made, net of an allowance for uncollectible accounts.
Control over Auxiliary
disclose the assets because it controls the guild through contracts or other legal documents that provide the authority to direct the guild’s activities
No Control over Auxiliary
not disclosed
Residual Interest
net assets . Net assets - residual interest in the assets of the entity that remains after reducing its liabilities.
Endowment Funds
long-term assets.
Plant Funds Group for Colleges and Universities
four subgroups: (1) unexpended plant funds, (2) funds for renewals and replacements, (3) funds for retirement of indebtedness, and (4) investment in plant.
Healthcare Entity Funds
two categories of funds: (1) the general funds and (2) the donor-restricted funds. The general fund is used to account for all assets and liabilities that are not required to be accounted for in a donor-restricted fund.
College Loan Funds Group
account for loans to students, faculty, and staff (and of resources available for such purposes).
College Plant Funds
The asset accounts contain the carrying amounts of the institution’s fixed assets.
Recognition of Restricted Revenue
Donations with a donor’s specified purpose must be recognized in the period of receipt
Two Types of Nonprofit Expenses
(1) program services and (2) supporting services. Program services are related directly to the primary missions of the nonprofit organization. Supporting services do not relate to the primary missions of the nonprofit organization and include such costs as management and general administration, membership development, and fund-raising.
Management and General Administration Costs
include such costs as board meetings, business management, record keeping, budgeting, accounting, and overall direction and leadership.
Unrestricted Cash Contributions
reported as an inflow in the operating activities section of the statement of cash flows unless there is a restriction that is donor-imposed.
Contributions to Building Fund
included as support in the statement of activities of a voluntary health and welfare organization.
Statement of Activities: Types of Classifications
provide information about expenses reported by their functional classification such as major classes of program services and supporting activities. VHWOs shall report that information as well as information about expenses by their natural classification in a separate financial statement.
Joint Costs
reported as fundraising expenses unless it can be demonstrated that a program or management
and general function has been conducted in conjunction with the appeal for funds.
Functional Classification of Expenses
Functional Classification of Expenses: Program Services (further the mission of the organization - emergency relief, research, community services, public health, and education). Supporting Services (secondary to the mission) Fundraising expenses and G&A expenses.
Current Funds Revenues
(1) all unrestricted gifts and other unrestricted resources earned during the reporting period and (2) restricted current funds to the extent that such funds were expended for current operating purposes. Additionally, tuition remissions or exemptions should be assessed and reported as revenue even though there is no intention of collecting from the student.
Program Services
related directly to the primary missions of the nonprofit organization.
Support Services
do not relate to the primary missions of the nonprofit organization and include such costs as management and general administration, membership development, and fund-raising.
Purpose of Statement of Activities
to demonstrate how the organization’s resources are used in providing various programs and services.
Other Revenues of Health Care Entity
the usual day-to-day revenues that are not derived from patient care and services, and generally, include (1) proceeds
from the sale of cafeteria meals, (2) revenue from educational programs, and (3) revenues from miscellaneous sources
Depreciation
All nongovernmental nonprofit organizations must record depreciation on most long-lived tangible assets.
Statement of Activities
includes the revenues, expenses and the net assets released from restriction. Thus, any net asset reclassification (from net asset with donor restrictions to net asset without donor restrictions) is reflected in the statement of activities.
Expenses
reported only in the net assets without donor restrictions column.
Nonprofit Cash Flows
follow the FASB format of statement of cash flows which does not include a capital financing activities section.
Financing Activities
cash flows from financing activities is expanded to include certain donor-restricted cash that must be used for long-term purposes.
Financing Activities
include proceeds from borrowing or issuing debt and principal repayments, but also include transactions that are unique to NFPs such as receipt of investment income restricted for reinvestment, contributions restricted for long-term investment and contributions restricted for acquisition of plan and equipment.
Unrestricted Cash Contributions
included in operating activities.
Investing Activities
include the sale and purchase of investments and PP&E.
Minimum Nonprofit Financial Statements
a statement of financial position, a statement of activities, and a statement of cash flows.
