Not-for-Profit Flashcards
Contributions or Donations
a non-reciprocal transfer to an NPO of cash or other asset, or a non-reciprocal settlement of liabilities
Endowments
contributions where principal balance must be maintained; interest may be added back to endowment or go for general or restricted use
Statement of Financial Position
assets, liabilities and fund balances or net asset balances
Fund balance = net assets
Disclosure required for restricted net assets, endowments and unrestricted net assets
Statement of Operations
revenues and expenses of the organization
revenue - expenses = the excess or deficiency of revenue over expenses (not net income)
Statement of Changes in Net Assets or Fund Balances
Statement of Retained Earnings (profit-orientated)
revenue and expenses on statement of operations are closed to this statement
Fund Accounting
a self-balancing set of accounts set up for each fun
includes: revenues, expenses, assets, gains and losses and the net asset balance (the FUND BALANCE)
each fund is shown as a column in the financial statements
General Fund
all items that are NOT subject to restriction in use
Restricted Fund
all items that ARE subject to restriction in use
restriction set up by a donar
Capital Asset Fund
all items that are related to capital assets (PP&E, amortization expense etc)
Endowment Fund
all endowments received from donars
Restricted Fund Method
revenue is recognized in period received or receivable in appropriate restricted fund
Methods to Account for Contribution Revenue
Deferral Method
Restricted Fund Method
Unrestricted Contributions - Deferral
recognize as revenue
if:
amount is reasonably estimated
ultimate collection is reasonably assured
Restricted Contributions - Deferral - current exp
recognize as revenue
Restricted Contributions - Deferral - future exp
defer and recognize as revenue when expenses incurred
