| |
| |
| Responsibilities of Treasurers and Chief Executive Officers | |
| |
| |
| Keeping Financial Records | |
| |
| |
| Preparing Accurate and Meaningful Financial Statements | |
| |
| |
| Budgeting and Anticipating Financial Problems | |
| |
| |
| Safeguarding and Managing Financial Assets | |
| |
| |
| Complying with Federal and State Reporting Requirements | |
| |
| |
| 25 Myths about Not-for-Profit Financial Management | |
| |
| |
| Conclusion | |
| |
| |
| Key Financial Concepts | |
| |
| |
| Accounting Distinctions between Not-for-Profit and Commercial Organizations | |
| |
| |
| Stewardship versus Profitability | |
| |
| |
| Principal Areas of Accounting Differences | |
| |
| |
| Conclusion | |
| |
| |
| Cash versus Accrual Basis Accounting | |
| |
| |
| Cash and Accrual Statements Illustrated | |
| |
| |
| Combination Cash Accounting and Accrual Statements | |
| |
| |
| Modified Cash Basis | |
| |
| |
| Legal Requirements | |
| |
| |
| Conclusion | |
| |
| |
| Fund Accounting and Internal Financial Reporting | |
| |
| |
| Fund Accounting Defined | |
| |
| |
| Categories of Funds | |
| |
| |
| Alternative Fund Groupings | |
| |
| |
| A Typical Set of "Fund" Financial Statements | |
| |
| |
| Elimination of Funds for Reporting Purposes | |
| |
| |
| Conclusion | |
| |
| |
| Interfund Transfers and Appropriations | |
| |
| |
| Transfers between Funds | |
| |
| |
| Appropriations | |
| |
| |
| Conclusion | |
| |
| |
| Fixed Assets--Some Accounting Problems | |
| |
| |
| Nature of the Problem | |
| |
| |
| Alternatives for Handling Fixed Assets | |
| |
| |
| Fixed Assets Where Title May Revert to Grantors | |
| |
| |
| Separate Building Fund | |
| |
| |
| Conclusion and Recommendations | |
| |
| |
| Fixed Assets--Depreciation | |
| |
| |
| Arguments against Taking Depreciation | |
| |
| |
| Why Depreciation Should Be Recorded | |
| |
| |
| Presentation in the Financial Statements | |
| |
| |
| Funding Depreciation | |
| |
| |
| Transfers of Replacement Funds to the Plant Fund | |
| |
| |
| Conclusion | |
| |
| |
| Investment Income, Gains and Losses, and Endowment Funds | |
| |
| |
| Accounting Principles | |
| |
| |
| Fixed Rate of Return Concept | |
| |
| |
| Accounting for Investments by Not-for-Profit Organizations, Summary of FASB Statement 124 | |
| |
| |
| Affiliated Organizations, "Pass-Through" Transactions, and Mergers | |
| |
| |
| Types of Relationships Often Found | |
| |
| |
| Definition of the Reporting Entity | |
| |
| |
| Mergers of Not-for-Profit Organizations | |
| |
| |
| Factors to Be Considered in Deciding Whether a "Pass-Through" Gift Is Truly Revenue and Expense to a Pass-Through Entity | |
| |
| |
| SFAS 136--Transfers of Assets to a Not-for-Profit Organization or Charitable Trust That Raises or Holds Contributions of Others | |
| |
| |
| Factors Related to Control That May Indicate That an Affiliated Organization (A) Should Be Combined with the Reporting Organization (R), if Other Criteria for Combination Are Met (Per AICPA SOP 94-3) | |
| |
| |
| Contributions, Pledges, and Noncash Contributions | |
| |
| |
| Expendable Current Support | |
| |
| |
| Gifts-in-Kind | |
| |
| |
| Support Not Currently Expendable | |
| |
| |
| Checklist: Factors to Be Considered in Deciding Whether a Particular Gift (for Operating Purposes) Should Be Classified as Purpose-Restricted or Not | |
| |
| |
| Checklist: Factors to Be Considered in Distinguishing Contracts for the Purchase of Goods or Services from Restricted Grants | |
| |
| |
| Checklist: Factors to Be Considered in Assessing Whether Contributed Services Are Considered to Require Specialized Skills | |
| |
| |
| Checklist: Factors to Be Considered in Determining Whether or Not an Organization Would Typically Need to Purchase Services if Not Provided by Donation | |
| |
| |
| Checklist: Factors to Be Considered in Assessing Whether a Donor Has Made a Bona Fide Pledge to a Donee | |
| |
| |
| Checklist: Factors to Be Considered in Deciding Whether a Gift or Pledge Subject to Donor Stipulations Is Conditional or Restricted | |
| |
| |
| Accounting Issues Relating to Fundraising | |
| |
| |
| Accounting for Gifts | |
| |
| |
| Accounting for Fundraising Expenses | |
| |
| |
| Other Tax Considerations | |
| |
| |
| Financial Statement Presentation | |
| |
| |
| Cash Basis Financial Statements | |
| |
| |
| Simple Cash Basis Statement | |
| |
| |
| Simple Statement with Last Year's Figures and Budget | |
| |
| |
| Combined Cash Basis Income Statement and Balance Sheet | |
| |
| |
| Separate Statement of Receipts and Disbursements and Statement of Net Assets | |
| |
| |
| Statement of Income with Certain Cash Transactions Omitted | |
| |
| |
| Modified Cash Basis Statements | |
| |
| |
| Conclusion | |
| |
| |
| Accrual Basis Financial Statements | |
| |
| |
| Simple Accrual Basis Statements | |
| |
| |
| Accrual Basis Statements--Fundraising Organization | |
| |
| |
| Accrual Basis Statements--International Organization | |
| |
| |
| Conclusion | |
| |
| |
| Multiclass Financial Statements | |
| |
| |
| Statement of Financial Accounting Standards No. 117--Financial Statements of Not-for-Profit Organizations | |
| |
| |
| Preparation of Statement of Cash Flows | |
| |
| |
| "Class" Financial Statements Explained | |
| |
| |
| Columnar Format Presentation | |
| |
| |
| A Complicated Set of Class Financial Statements | |
| |
| |
| Summary or Condensed Statements | |
| |
| |
| Conclusion | |
| |
| |
| Financial Statements of Not-for-Profit Organizations--Review Points | |
| |
| |
| Accounting and Reporting Guidelines | |
| |
| |
| Voluntary Health and Welfare Organizations | |
| |
| |
| Fund Accounting | |
| |
| |
| Accounting Principles | |
| |
| |
| Accounting for Contributions | |
| |
| |
| Accounting for Other Income | |
| |
| |
| Accounting for Expenses | |
| |
| |
| Accounting for Assets | |
| |
| |
| Net Assets | |
| |
| |
| Financial Statements | |
| |
| |
| Recommended Simplified Presentation | |
| |
| |
| The Evolution of Standards | |
| |
| |
| Checklist: Factors to Be Considered in Deciding Whether Allocation of Joint Costs of Multipurpose Activities (Under AICPA SOP 98-2) Is Appropriate | |
| |
| |
| Checklist: Consideration of Whether Items Might Be Reported as Operating or Nonoperating (Within the Context of [paragraph]23 of SFAS No. 117) | |
| |
| |
| Colleges and Universities | |
| |
| |
| Authoritative Pronouncements | |
| |
| |
| Fund Accounting | |
| |
| |
| The Principal Financial Statements | |
| |
| |
| Accounting Principles | |
| |
| |
| Simplified Format for Financial Statements | |
| |
| |
| Health Care Providers | |
| |
| |
| Introduction | |
| |
| |
| Authoritative Pronouncements | |
| |
| |
| Financial Statements | |
| |
| |
| Accounting Principles | |
| |
| |
| Additional Considerations for Tax-Exempt Debt Issuers | |
| |
| |
| Accounting Standards for Other Not-for-Profit Organizations | |
| |
| |
| Accounting Principles | |
| |
| |
| Financial Statements | |
| |
| |
| Combined Financial Statements | |
| |
| |
| Checklist: Factors to Be Considered in Deciding Whether a Payment Described as Membership Dues is Properly Recorded by the Recipient as Dues or as a Contribution | |
| |
| |
| Special Accounting Issues for Specific Organizations | |
| |
| |
| Associations and Professional Societies | |
| |
| |
| Churches | |
| |
| |
| Clubs | |
| |
| |
| Libraries | |
| |
| |
| Museums | |
| |
| |
| Performing Arts Organizations | |
| |
| |
| Private Foundations | |
| |
| |
| Religious Organizations Other Than Churches | |
| |
| |
| Research and Scientific Organizations | |
| |
| |
| Private Elementary and Secondary Schools | |
| |
| |
| Public Broadcasting Stations | |
| |
| |
| The Financial Accounting Standards Board and Future Trends in Not-for-Profit Accounting | |
| |
| |
| Financial Accounting Standards Board | |
| |
| |
| Trends in Not-for-Profit Accounting | |
| |
| |
| Conclusion | |
| |
| |
| Controlling the Not-for-Profit Organization | |
| |
| |
| The Importance of Budgeting | |
| |
| |
| The Budget: A Plan of Action | |
| |
| |
| Monthly and Quarterly Budgets | |
| |
| |
| Timely Interim Statements | |
| |
| |
| A Five-Year Master Plan | |
| |
| |
| Conclusion | |
| |
| |
| Avoiding Bankruptcy | |
| |
| |
| Early Recognition of Problems | |
| |
| |
| Remedial Action | |
| |
| |
| Confronting Bankruptcy | |
| |
| |
| Conclusion | |
| |
| |
| Small Organizations--Obtaining the Right Bookkeeper | |
| |
| |
| Level of Bookkeeping Services Needed | |
| |
| |
| Personality Characteristics | |
| |
| |
| Alternatives to Bookkeepers | |
| |
| |
| Timing in Hiring a Replacement | |
| |
| |
| Conclusion | |
| |
| |
| Small Organizations--Providing Internal Control | |
| |
| |
| Reasons for Internal Control | |
| |
| |
| Fundamentals of Internal Control | |
| |
| |
| Some Basic Controls | |
| |
| |
| Fidelity Insurance | |
| |
| |
| Conclusion | |
| |
| |
| Effective Internal Accounting Control for Not-for-Profit Organizations | |
| |
| |
| Introduction to Internal Accounting Control | |
| |
| |
| Elements of an Effective Internal Accounting Control System | |
| |
| |
| Basic Internal Accounting Control System | |
| |
| |
| Specific Nonprofit Internal Accounting Controls | |
| |
| |
| Independent Audits | |
| |
| |
| Functions and Limitations | |
| |
| |
| Benefits of an Independent Audit | |
| |
| |
| Selecting a Certified Public Accountant | |
| |
| |
| Public Accountants | |
| |
| |
| Audit Committees | |
| |
| |
| Conclusion | |
| |
| |
| Checklist: Criteria for Selection of a CPA | |
| |
| |
| Investments | |
| |
| |
| Pooling versus Individual Investments | |
| |
| |
| Calculating Share Values in Pooled Investments | |
| |
| |
| Allocation of Pooled Income | |
| |
| |
| Professional Investment Advice | |
| |
| |
| Safeguarding Investment Securities | |
| |
| |
| Conclusion | |
| |
| |
| Principal Federal Tax and Compliance Requirements | |
| |
| |
| Principal Federal Tax Requirements | |
| |
| |
| Organizations Exempt from Tax | |
| |
| |
| Charitable Organizations | |
| |
| |
| Private Foundations | |
| |
| |
| Private Operating Foundations | |
| |
| |
| Other Concerns for Charities | |
| |
| |
| Noncharitable Exempt Organizations | |
| |
| |
| Unrelated Business Income | |
| |
| |
| Registration and Reporting | |
| |
| |
| Principal Federal Tax Forms Filed | |
| |
| |
| Form 990: Return of Organization Exempt from Income Tax | |
| |
| |
| Form 990-PF: Return of Private Foundation | |
| |
| |
| Form 990-T: Exempt Organization Business Income Tax Return | |
| |
| |
| Conclusion | |
| |
| |
| State Compliance Requirements | |
| |
| |
| Registration for Organizations Soliciting Funds | |
| |
| |
| Registration for Organizations Having Assets within the State | |
| |
| |
| Individual State Requirements | |
| |
| |
| Audits of Federally Funded Programs | |
| |
| |
| Basic Requirements | |
| |
| |
| Requirements and Definitions | |
| |
| |
| Responsibilities of the Receiving Organization | |
| |
| |
| What to Expect from the Audit | |
| |
| |
| Conclusion | |
| |
| |
| Setting Up and Keeping the Books | |
| |
| |
| Cash Basis Bookkeeping | |
| |
| |
| Three Steps in a Bookkeeping System | |
| |
| |
| Checkbook System | |
| |
| |
| Cash Basis System | |
| |
| |
| Conclusion | |
| |
| |
| Simplified Accrual Basis Bookkeeping | |
| |
| |
| Books and Records | |
| |
| |
| Chart of Accounts | |
| |
| |
| Monthly Accrual Entries | |
| |
| |
| Payroll Taxes | |
| |
| |
| Fixed Asset Register and Depreciation Schedule | |
| |
| |
| Investment Ledger | |
| |
| |
| Conclusion | |
| |
| |
| Full Accrual Basis Bookkeeping | |
| |
| |
| Books and Records | |
| |
| |
| Chart of Accounts | |
| |
| |
| Sales Register | |
| |
| |
| Accounts Receivable Subsidiary Ledger | |
| |
| |
| Cash Receipts Book | |
| |
| |
| Accounts Payable Register | |
| |
| |
| Cash Disbursements Book | |
| |
| |
| Monthly Accrual Entries | |
| |
| |
| Conclusion | |
| |
| |
| Fund Accounting Bookkeeping | |
| |
| |
| Chart of Accounts | |
| |
| |
| Books and Records | |
| |
| |
| Interfund Transactions | |
| |
| |
| Trial Balance | |
| |
| |
| Conclusion | |
| |
| |
| Automating the Accounting Records | |
| |
| |
| When to Consider Automating or Upgrading | |
| |
| |
| What to Automate | |
| |
| |
| Selecting the Right Software | |
| |
| |
| Implementing the New System | |
| |
| |
| Common Pitfalls to Successful Automation | |
| |
| |
| Conclusion | |
| |
| |
| Use of Rulings and Underscorings | |
| |
| |
| Accounting and Disclosure Guide for Not-for-Profit Organizations | |
| |
| |
| Implementation of SFAS No. 116 and No. 117 | |
| |
| |
| New AICPA Audit and Accounting Guide: Not-for-Profit Organizations | |
| |
| |
| Bibliography | |
| |
| |
| Index | |