Non-Profit Overview/Stmt of Financial Position & Activities Flashcards
When should a conditional pledge be recognized as revenue?
When the pledge conditions are met
When should an unconditional pledge be recognized as revenue?
Recorded as revenue and pledge receivable when promise is made.
What is the purpose of the statement of financial position for a not-for-profit?
To provide relevant information about the assets, liabilities, and net assets, and their relationship to one another at a moment in time.
What accounting base/framework should not-for-profit organizations utilize?
Accrual….. but they can use others if an organization they are working with requires them to do so.
What is a refundable advance in relation to a not-for-profit organization?
It is a deferred revenue (liability) can represent cash that has been donated, but first an obligation must be met.
What does the entry look like to record a pledge?
Dr. Pledge Receivable
Cr. Allowance for uncollectible pledges
Cr. Revenue w/out restrictions
Cr. Revenue with restrictions
When are donations of services recognized on the statement of activities?
If the services create or enahance a nonfinancial asset OR the services require specialized skills and the individual donating his/her services posses those skills.
What is a split-interest agreement?
It is when a donor makes a gift to a not-for-profit, but the organization that received the funds is not the sole beneficiary… An example is a charitable remainder trust.
What is an example of when a not-for-profit may act as an intermediary and has no contributions recognized?
A donor provides funds, but tells the not-for-profit to give the funds to another not-for-profit, BUT also says he can change which not-for-profit to send the funds to.
