Not-for-Profit Flashcards
4 types of not for profit
Voluntary health & welfare organizations: organizations that provide or low cost services with financial support from volunteers and grants, and the people that help don’t get the services
Other not for profit organizations: benefit their own members and providers can be recipient of services like the CBA
Healthcare
College & universities
What kind of accounting does a not for profit use
Accrual accounting with a flow of economic resources measurement focus
Not for profit statement of financial position
Assets = Liabilities + Net Assets
Net assets are broken down into assets with donor restriction & without
Required financial statements for not for profits
Statement of financial position, activities, and cash flows
Not for profit statement of cash flows
Operational: anything unrestricted or restricted for operational activities
Investing: inflows & outflows from the sale of capital & investment assets
Financial: anything restricted long term & debt related
Net assets section of statement of activities for not for profit
Literally just a line for assets without restriction, then a line with donor restriction and finally a like that says total net assets just adding them together
Breakdown of statement of activities for a not for profit
First is revenues & gains you sum everything up then have a separate line for net assets released from restrictions
Expenses & losses is broken down by program & support services and other shit then a section and reported as a decrease in net assets without donor restriction
How to value donation
When received value them at the FV at the date received, then their market value at the financial reporting date
Financial statements required for hospitals
Statement of Financial Position
Statement of Activities
Statement of Cash Flows
Net Patient Revenue
Gross patient revenue minus charitable services, contractual agreements, and estimated collectible accounts equals net patient revenue
Other Revenue
Shit that has to do with hospital operations, but not patient care like gift shops, cafeteria sales, parking, etc.
At what value do not for profits value debt and equity securities?
FV
