Not for Profit Flashcards
4 Types of Non-Profit Organizations
- Voluntary health & welfare organizations: people giving resources are not primary recipients like “Red Cross or Make-A-Wish”
- Other NPO: Benefit their members like religious groups or jim-ay-ah”
- Healthcare
- Colleges & Universities
Nongovernmental not for profit accounting
- Accrual accounting
- Economic resources measurement focus
Required Financial Statements for Not-for-Profit
- Statement of Financial Position
- Statement of Activities
- Statement of Cash flows
Statement of Financial Position not for profit
- Assets = Liabilities + Net Assets
- looks the same you just have to sub in net assets
Net Assets Not for Profit Balance Sheet
Broken into 2 parts
- assets without donor restriction
- assets with donor restriction
Statement of Activity
Plus changes in assets without donor restriction
Plus Net Assets released from restriction
Minus Expenses: Program, services, and random shit like fires
Minus changes in assets with donor restriction
Program & Supporting Services
Program: further mission of the organization
Support: provide organizational infrastructure like salaries, supplies, and computer expenses and raise resources like a fund raiser
Not for Profit Operating Cash flow
+ Unrestricted cash contributions
+ Unrestricted earnings investment
+ Revenue restricted for Operating (Program restrictions)
+ Revenue from exchange contracts
- Operating expenditures(salaries, supplies, interest exp)
Not for Profit Investing
Includes inflows from the sale of capital assets, marketable securities, etc., and outflows for the purchase of capital assets
Not for profit Financial
- contributions and investment revenues restricted for long-term purposes
- other financing activities for debt proceeds, debt repayment, lease payments, etc.
Valuation of donations other than stock
Recorded at FV as of the date of gift
Internal Restrictions
Restrictions from may a board of trustees or any internal group in charge doesn’t effect anything
If money is donated for the purpose of spending on something exernal
Liability
Certain collections that don’t need to be reported
- asset is held for public exhibition, education, or research rather than financial gain
- asset must be protected, unencumbered, cared for, and preserved
- asset is subject to a policy that requires proceeds from sales of collection items to be used to acquire other items for the collection
Journal Entry from someone who specializes in shit
Expense
—–Revenues-Contributions
