Nongov't Not for Profit

Question 1

Key features

Answer 1

~ Mission oriented
~ Rev is reinvested into the org to further mission
~ Tax-exempt status
~ fundraising
~ No Indiv or group of ppl owns shares of org or has claim to assets

Question 2

Service Contributions

Answer 2

Contributed services are both rev and exp is ALL the following occur:
~ the service would otherwise be purchased
~ Value of service is measurable
~ Service requires specialized skills and is provided by an individual who possesses these skills

Question 3

Donation of Collectible Items

Answer 3

1. recorded at Fair Market Value or
2. not req’d to recognize the donated items at FMV is all conditions are met:
   ~ purpose: items must be held for public exhibit, educational programs or scholarly research
   ~ preservation: the NFP must commit to protecting and preserving the donated items
   ~ use of sale proceeds: NFP is req’d to reinvest the proceeds in similar items for its collection

Question 4

Agency Transactions

Answer 4

NFP acts as an agent, intermediary, or custodian for funds that are intended for a 3rd party
Revenue:
~ Record the trans as Contribution Revs is any of the following are met:
1. The NFP has “Variance Power” over the donation, meaning it has the authority to redirect the funds as it sees fit
2. The beneficiary of the donation is financially related to the NFP
DR: Cash/Asset
CR: Cont Rev: Net Assets w/o donor restrictions

If the conditions are not met: book as liability
DR: Cash /Asset
CR: Refundable Advance