chapter_18_Not for Profit Handout

chapter_18_Not for Profit Handout - PRIVATE NOT-FOR-PROFIT...

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PRIVATE NOT-FOR-PROFIT ORGANIZATIONS Chapter 18 Not-for-Profit Organizations Have a different perspective than business enterprises no ownership interest mission is to provide services -- but not at a profit Resources are primarily from voluntary sources, not from user fees Contributors are interested in activities of non-profit organizations: program vs. support can control how funds are used (through restrictions on donations) which provides the rationale for the use of fund acctg. for some non-profits 4 Classifications: Examples Classifications Public GAAP = GASB Private GAAP = FASB Univ. of Illinois DePaul Univ. Hospitals/Health Care Organizations Stroger Hospital Advocate Hospital Voluntary Health & Welfare Organizations (VHWO's) relatively few in number Crusade of Mercy Certain Not-for-Profit Organizations relatively few in number Beta Alpha Psi Chapter 18 - FASB Standards for PRIVATE Nonprofit Organizations (SFAS 116,117,124 – ASC 958) 1
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SFAS 116 & 117 (ASC 958) apply to ALL NONGOVERNMENTAL nonprofit organizations (private not-for-profits follow FASB, public not-for-profits follow GASB) Colleges & Universities: no longer able to defer recognition of restricted contributions in operating statements as inflows until expenditures made VHWO's: donated services = contributed services OLD NEW VHWO ALL NONPROFIT Restricted Contributions directly to fund balance Oper. Statement: Public Support almost all = revenue/gain Contributions for Endowments increase fund balance increase fund balance almost all = revenue/gain Contributions (ASC 958-605) Unconditional transfer : record as revenue when transfer made Unconditional promise : record as revenue when promise received (if legally binding) Conditional promises : - if remote probability that condition won't happen, = unconditional - if conditional, NOT recorded as contribution - if assets received but return & use is conditional,
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chapter_18_Not for Profit Handout - PRIVATE NOT-FOR-PROFIT...

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