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Accounting and disclosure requirements for not-for-profit organizations differ significantly from those of for-profit organizations. Not-for-profit organizations do not utilize equity ownership interests, receive a significant portion of their revenues from donors, and have different motives for existence than their for-profit counterparts.

This course analyzes the basics of Not-for-Profit Accounting as established by Generally Accepted Accounting Principles (GAAP) by reviewing the following four Financial Accounting Standards Board (FASB) standards:

  • FASB No. 116 (Accounting for Contributions received and made)
  • FASB No. 117 (Financial Statements of Not-for-Profit Organizations)
  • FASB No. 124 (Accounting for Certain Investments Held by Not-for-Profit Organizations)
  • FASB No. 157 (Fair Value Measurements)

The course will explore how the following categories distinguish Not-for-Profit Financial Statements:

  • Contributions received and made
  • Restricted, Temporarily Restricted and Unrestricted Funds
  • Certain investments held by Not-for-Profit organizations
  • Fair Value of assets

Intro Video Transcript

Non Profit Accounting Training Course By Richard Weeks, CPA Hello, My name is Richard Weeks. I am your instructor for this class: Accounting for Not for Profit Organizations. Course Overview: • This course analyzes the fundamentals of Not- for- Profit (NFP) accounting as established by Generally Accepted Accounting Principles (GAAP). • It will review four Financial Accounting Standards Board (FASB) standards which apply to Not- for- Profit organization You already know about debits and credit, so this course will focus on both the Macro and Micro levels of NFP accounting. You will learn to differentiate Not for Profit accounting from four profit accounting. We will review four financial accounting standard boards, and see how they apply to Not for Profit Organizations. Features of Not for Profits: • Receipt of voluntary contributions for support A contribution is defined as the transfer of an asset or the forgiveness of a debt. • Restrictions imposed by donors regarding use of contributions It’s important to realize why a Not for Profit is in existence versus a four profit. A four profit exists to make a profit through providing a service that is desired by other entities. A Not for Profit exists to meet a need for the community which could be defined as a small community or a large community. As you can see from the screen the receipt of voluntary contributions for support a very important aspect of not for profits and finally, restrictions are imposed upon these donations and regarding the use of these contributions. Standards Applying to Not-for-Profits  FASB No. 116 Accounting for Contributions received and made.  FASB No.117 Financial Statements of Not-for-Profit Organizations  FASB No. 124 Accounting for Certain Investments Held by Not-for-Profit Organizations The Financial Accounting Standard Board, decided in the 1990’s to standardize accounting rules because at that time the ability to analyze and compare financial statements was very difficult. A Not for Profits objective in producing financial statements is: 1. To analyze the programme is costing money over and above their budget. 2. To see if services in a given area is financially feasible. 3. And finally, to see if the organization has sufficient resources to carry out its mission. We will be studying as I have mentioned, four FASBs, that I believe will help us understand in more detail, these objective of the Not for Profit. Additional Standards set for Not-for-Profits  FASB No. 157 Fair Value Measurements  Applicable to For-Profits as well as NFPs The fourth FASB that we will be studying is the FASB number 157. In the2000’s FASB was approved. It also dealt with comparative to this for the ability to improve analysis. FASB 116 Accounting for Contributions received and made  One of the unique characteristics of a Not-for-Profit is the receipt of voluntary contributions for support. A contribution is defined is the transfer of an asset or the forgiveness of a debt. FASB 116 titled “Accounting for Contributions received and made” One of the unique features of a Not-for-Profit is the receipt for Voluntary Contributions. Contributions have posed one of the most vexing reporting problems. This is because a percentage of contributions carry restrictions on how the donations may be used. Also, when a multiyear contribution for Not-for-Profits recognize a multiyear contribution FASB 116 was created to define how these transactions should be recorded and when. The main points of FASB 116 are: 1. Accounting standards for contributions 2. It applies to all entities receiving or making contributions 3. When is Revenue recognized Another example would be; If the Not for Profit had received a loan, if a Mrs. Smith loaned an organization fifty thousand dollars to meet its payroll, this was recorded as a liability not as revenue. If in time she forgives this debt, the liability would be transformed into a contribution of fifty thousand dollars. FASB 116 Main Points The main points of FASB 116 are also when:  Conditional promises to give are recognized when conditions of the gift have been substantially met.  Requires a distinction between contributions having permanent, temporary or no restrictions. Finally  The recognition of expiration of donor- imposed restrictions and when this expiration occurs.

Learning Objectives

  • Identify features of Not-for-Profit Organizations
  • Identify the pivotal FASB pronouncements which form the basis for Generally Accepted Accounting Principles for a Not-for-Profit Organization.
  • Create Journal entries for Contributions to Restricted, Temporarily Restricted and Unrestricted Funds
Last updated/reviewed: May 17, 2018

37 Reviews (99 ratings)Reviews

3
Anonymous Author
Honestly the presenter was difficult to understand in his manner of speaking at times. He would talk about a slide, but not the slide that was actually showing. Make it a little difficult, but was able to understand the bulk of the class. He mostly read the slides without much other input.
3
Member's Profile
It's hard to put a finger on just what was wrong with the presentation, but it was a bit off. The instructor was a very slow speaker and sometimes included tidbits of information relating to the recent financial crisis that didn't really seem relevant to the learning objectives.
3
Member's Profile
I read in multiple reviews that the course was very slow, but that still didn't prepare me for how slowly the instructor spoke. It was hard to not wander with long pauses between almost every word. The information presented was good, though basic.
4
Member's Profile
This is a good introduction to the differences in accounting for not for profits and for profit companies. The speaker is very deliberate in his speech which does make you wish he would talk faster, but the information provided is informative.
4
Member's Profile
Great content and the slides were put together well. I would just suggest that the speaker speak faster. There were way to many long pauses and I feel like a lot more information could have been fit into the 1 hour.
5
Member's Profile
I enjoyed learning about NFP. In my opinion, Mr. Weeks was very clear and concise in the delivery of the lesson at hand. It was great looking at accounting from a NFP vs FP view point. Thank you.
3
Anonymous Author
Important subject matter. I wish the pace was a little faster to accommodate a few more examples of restrictions and revenue recognition topics, but I think it's a valuable course.
4
Anonymous Author
Good course for a basic understanding of accounting in not for profit organizations. This is a subject which has been changing more in recent years than it has in the past.
5
Anonymous Author
I liked the live video but the course could have been better if the video showed the instructor. much of the instruction was verbatim from the slides.
Anonymous Author
Speaker had about ten minutes worth of material, and stretched it to 50 minutes. It was excruciating. In addition, the video feed kept going out.
4
Member's Profile
Thanks for refreshing the standards in Accounting for Not-for-Profit Organizations. Please give real examples and add more on CFO experiences.
4
Anonymous Author
The material delivery was slow, but perhaps that was because I was familiar with the concepts. I would prefer to see more varied examples.
3
Member's Profile
Good overview of accounting principles for NFPs, but a little dry. There are some examples that do with help the application of the concepts.
4
Mr Weeks speaks very clearly, but slowly, which can be distracting. Nice information, although some of the slides flipped way too fast.
4
Member's Profile
Instructor was very slow speaking, while sometimes the slides went too quickly. Can be hard to focus. However, content was excellent.
4
Member's Profile
Great and easy to understand overview of how a Not-for-Profit business is different from a For-Profit business.
3
Member's Profile
Though the discussion around NFP's was decent, the instructor was the slowest lecturer I have ever experienced.
5
Anonymous Author
Nice course well explained and clearly presented. This is a unique topic I cannot find in books.
4
Anonymous Author
Clear and concise presentation of the FASB's applicable to not for profit accounting.
4
Member's Profile
Information is great, but slides go too fast and sometimes seem out of order.
4
Anonymous Author
very basic but interesting course for those new to not for profit orgs
4
Member's Profile
Easily understood. Instructor spoke slow enough to follow along.
5
Member's Profile
It was everything that I expected from a course on NFP Accounting
Anonymous Author
Pick up the pace! Otherwise, it was valuable info. Thanks!
3
Anonymous Author
The speaker was a little dry, but the information was good
4
Anonymous Author
Good introduction to NFP accounting concepts!
5
Anonymous Author
Good overview of nonprofit accounting...
Anonymous Author
Interesting Topic. Very dry delivery.
4
Anonymous Author
Good review of nonprofit accounting.
5
Anonymous Author
Good course! My objective was met.
2
Anonymous Author
Difficult to understand speaker
4
Anonymous Author
interesting subject matter
4
Member's Profile
Presenter talks slowly.
5
Anonymous Author
Informative
5
Member's Profile
nice stuff
4
Member's Profile
Good
5
Anonymous Author
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Prerequisites

Course Complexity: Intermediate

Prerequisite: Basic proficiency with accounting

 

Advanced Preparation: None

 

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
Contributions, Pledges, and Grants
  8:10Types of Contributions
  6:37Pledges, Grants, and FASB 117
Not-for-Profit Financial Statements
  9:22The Financial Statements
  11:13Statements, Reporting, FASB 124, and FASB 157
CONCLUSION
  2:45Summary and Conclusion
Continuous Play
  45:49Introduction to Accounting for Not-for-Profit Organizations
SUPPORTING MATERIALS
  PDFAccounting for Not-for-Profit Organizations Glossary/Index
  PDFSlides: Accounting for Not-for-Profit
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM