Questions and Answers from the latest New Form 990 training I did: For calculating our total assets to determine which form we use, do we exclude property, plant and equipment? Nope, you use total assets for figuring out which form, either the 990, 990 EZ or the 990 N, to fill out. When filling out [...]
Posts Tagged ‘Restrictions’
Some Questions and Answers
What would be the accounting transaction recorded by a 501(c)3 organization for a permanently restricted donation received? The particulars will depend on what accounting software you are using. Basically you would debit cash or receivables (depending on if you got the money or just a letter saying you were getting the money) and credit an [...]
Why Nonprofits Have Profit
A question I received recently is a familiar one: How can I best explain to a non-accountant how we can have a net profit and retained earnings for a not-for-profit organization? I think the confusion here lies with the term “not-for-profit.” Charitable / Nonprofit / Not-for-Profit organizations are not organized to make a profit for [...]
FAS 117-1
Does your nonprofit have a donor-restricted endowment fund or a board-designated endowment fund? Are you hoping to get or create one? Effective for fiscal years ending after December 15, 2008, nonprofit organizations with donor-restricted and board-designated endowment funds are facing changes in financial statement reporting and disclosure requirements. In August 2008 the Financial Accounting Standards [...]
