Not-for-Profit Organizations (Chapters 14, 15, 16)

A set of vocabulary flashcards covering the characteristics, financial reporting, and specific accounting rules for various types of Not-for-Profit organizations, including healthcare and educational institutions.

Voluntary Health and Welfare Organizations (VHWO)

Research and disease organizations focused on providing health and welfare services to the public.

GASB

The authority that sets standards for Governmental financial entities.

FASB

The authority that sets standards for Not-for-Profit entities.

Statement of Financial Position

The NFP equivalent of a balance sheet, reporting assets, liabilities, and net asset classifications.

Net Assets without Donor Restrictions

Net assets that include limited-use assets such as board-designated funds, debt covenants, and third-party agreements.

Net Assets with Donor Restrictions

Net assets subject to donor-imposed restrictions, which can be related to capital, time, purpose, or endowment.

Program Expenses

Functional classifications of expenses that relate directly to the mission of the organization.

Support Expenses

Functional classifications of expenses including management, general, and fund-raising activities.

Performance Indicator

A required metric for health care NFPs, similar to operating income, reflecting the results of operating activities.

Statement of Cash Flow (NFP)

Financial statement using FAS 95 that categorizes cash flows into operating, investing, and financing activities.

Exchange Transactions

Transactions where revenue is recognized using a 5-step process involving contracts and performance obligations.

Contractual Adjustments

Adjustments in health care accounting that record a contra-revenue for the difference between gross charges and agreed-upon rates with third parties.

Implicit Price Concessions

Variable consideration in health care accounting recorded when it is believed a portion of a patient receivable will not be collected.

Charity Services

Healthcare services provided that are not included in gross income and are recorded as a direct deduction to accounts receivable and revenue.

Conditional Contribution

A contribution not recognized until specific barriers, such as a right of return or measurable performance requirements, are met.

Donated Services Recognition

Services recognized as support if they create or enhance nonfinancial assets OR require specialized skills that would otherwise need to be purchased.

Permanent Endowment

An endowment where the corpus must be maintained in perpetuity.

Term Endowment

An endowment where the corpus must be maintained until a specific event or passage of time occurs.

Annuity Agreement

An irrevocable split-interest agreement providing periodic payments to a donor for a stated time.

Pooled (Life) Income Fund

A fund that pays income from a pool of managed assets to a donor or designated individual, usually for the duration of their life.

Form 9$90$-N

Also known as an "e-postcard," filed by small NPOs with gross receipts less than or equal to $50,000$.

Quasi-endowment

A fund where the restriction is placed by an administrative board rather than an outside donor, generally considered an unrestricted type fund.

Unexpended Plant Fund

A subfund of plant funds used to finance the acquisition or construction of PPE, including related liabilities.

Unrelated Business Income

Income of an NFP that is subject to tax after the first $1,000$ net.