Comments on: FAS 117-1 http://www.notforprofitaccounting.net/2009/02/18/fas-117-1/ Oddly Passionate About Nonprofit Accounting Fri, 03 Feb 2012 01:17:06 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Alan http://www.notforprofitaccounting.net/2009/02/18/fas-117-1/comment-page-1/#comment-370 Alan Thu, 01 Apr 2010 17:02:33 +0000 http://www.notforprofitaccounting.net/?p=654#comment-370 Tanya, The income would the earnings of the principle of the original amount put into a board designated endowment. For the time period, I read it as permanent. The endowment is something to be held in perpetuity. Here are two more links on the subject that may help, and do check the glossary linked to above as well. http://www.entrepreneur.com/tradejournals/article/190793212.html http://www.abanet.org/rppt/meetings_cle/2008/jointfall/Joint08/ExemptOrgCharitablePlanOrganGroup/FSP_No_FAS%20117-1_EndowmentNot-for-ProfitOrg.pdf Alan Tanya,

The income would the earnings of the principle of the original amount put into a board designated endowment. For the time period, I read it as permanent. The endowment is something to be held in perpetuity. Here are two more links on the subject that may help, and do check the glossary linked to above as well.
http://www.entrepreneur.com/tradejournals/article/190793212.html
http://www.abanet.org/rppt/meetings_cle/2008/jointfall/Joint08/ExemptOrgCharitablePlanOrganGroup/FSP_No_FAS%20117-1_EndowmentNot-for-ProfitOrg.pdf

Alan

]]> By: Tami http://www.notforprofitaccounting.net/2009/02/18/fas-117-1/comment-page-1/#comment-368 Tami Sun, 28 Mar 2010 22:51:04 +0000 http://www.notforprofitaccounting.net/?p=654#comment-368 Hi: Could you help me to define a board designated endowment ? I have read the definition, but am not clear about how to define "income" and "long" period. I presume that income = earnings, but I am told that income could also mean the future release of principal. Not sure how to define long, seems quite subjective. Thank you ! Tanya Hi: Could you help me to define a board designated endowment ? I have read the definition, but am not clear about how to define “income” and “long” period. I presume that income = earnings, but I am told that income could also mean the future release of principal. Not sure how to define long, seems quite subjective. Thank you ! Tanya

]]> By: Alan http://www.notforprofitaccounting.net/2009/02/18/fas-117-1/comment-page-1/#comment-313 Alan Thu, 28 Jan 2010 20:36:46 +0000 http://www.notforprofitaccounting.net/?p=654#comment-313 Randy, As long as you still own the asset I would think it should still be listed on your books. Have you checked with the foundation to see how other nonprofits have recorded similar transfers? Randy,

As long as you still own the asset I would think it should still be listed on your books. Have you checked with the foundation to see how other nonprofits have recorded similar transfers?

]]> By: Randy http://www.notforprofitaccounting.net/2009/02/18/fas-117-1/comment-page-1/#comment-311 Randy Tue, 26 Jan 2010 19:19:13 +0000 http://www.notforprofitaccounting.net/?p=654#comment-311 Alan, Our non-profit transfered $50,000 to a non-profit community foundation. We may make recommendations and give advice to the foundation regarding administration and distribution of the funds but the foundation maintains ultimate authority and control over the assets and distributions. How would this transaction be reflected on our financials in the year it took place. Would we need to show the balance and ongoing activity of the fund held by the foundation as an assets showing as beneficial interest in an asset held by other? Thank you, Alan,
Our non-profit transfered $50,000 to a non-profit community foundation. We may make recommendations and give advice to the foundation regarding administration and distribution of the funds but the foundation maintains ultimate authority and control over the assets and distributions. How would this transaction be reflected on our financials in the year it took place. Would we need to show the balance and ongoing activity of the fund held by the foundation as an assets showing as beneficial interest in an asset held by other?
Thank you,

]]> By: Alan http://www.notforprofitaccounting.net/2009/02/18/fas-117-1/comment-page-1/#comment-191 Alan Mon, 17 Aug 2009 19:53:43 +0000 http://www.notforprofitaccounting.net/?p=654#comment-191 Craig, I'm going to say that, based on what I have read about this, if the board has established that the permanently restricted amount of this fund is $50,000 that you cannot draw from it until it reaches that point. If the fund is restricted by the donor then check with the agreement you have with them or ask then if you can re-work the agreement based on the current environment. I'd like to read what others think. Craig,

I’m going to say that, based on what I have read about this, if the board has established that the permanently restricted amount of this fund is $50,000 that you cannot draw from it until it reaches that point. If the fund is restricted by the donor then check with the agreement you have with them or ask then if you can re-work the agreement based on the current environment.

I’d like to read what others think.

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