Non Profit Fund Accounting
We have all had questions on Non Profit Fund Accounting before. Below are the top questions posed by visitors just like you to our. We hope our answers located below will help you solve your funding problems today. Feel free to ask another question, or even comment on what has been written.
There has been a lot of debate recently regarding Non Profit Fund Accounting, and it is therefore critical for you, the reader, to grab all of the information that is out there on the vast topic of funding. Your funding can have a huge impact on your future, so don’t procrastinate any longer. Read up on Non Profit Fund Accounting today!
Monica Said:
How can you make donations for a cancer fund tax-deductable?We Answered:
Yes, it has to be set up as 501(c)3 to be deductible. And a donation specified for a particular person or family is never deductible. But it sounds like a good cause, anyway.Arlene Said:
Where can I find definitions on terms like "unrestricted funding" as relates to grant accounting, etc.?We Answered:
The ultimate "bible" for answering this question is FASB 116 and FASB 117, statements issued by the Financial Accounting Standards Board in the 1990's.Barrons also has a dictionary of financial terms.
"Unrestricted funding" means most funding given to non-profit organizations except fund specficially for use in a future period (much as the future year portion of multi-year grants, which are "temporarily restricted" until the year in which they can be used, when they transfer to unrestricted) and funds given with permanent legal restrictions which cannot be altered (endowments, for example) which are "permanently restricted."
Clifton Said:
Accounting: Large Education Org: remove any fund's small remainder balances?We Answered:
It depends on the kinds of funds you're talking about. Are there external restrictions on the amounts? If there aren't, you'd probably just want to transfer them to unrestricted funds to clear them out.Eleanor Said:
How can I know a non-profit bank account or PayPal account?We Answered:
You can ask for a copy of their non-profit status letter as well as their EIN number. You can also ask for copies of their 990 reports.As to making sure that the bank account is actually attached to that particular non-profit and not just someone's personal account, I would ask for copies of their bank statements or a letter from the bank.
BUT, if you are raising funds via Paypal and then paying the non-profit via Paypal, there is no way of you knowing if they change the bank account attached to their paypal account. So, even if you verify their account initially, it could still be changed by someone at some point and you'd never know it. You have no way or controlling or seeing which accounts they have connected to their paypal account. I would only do direct bank transfers to the non-profit or cut paper checks to them.
Greg Said:
Can the IRS take money out of a non-profit business account?We Answered:
The business is a separate entity. Your creditors can not collect from its assets but can levy on it for what it pays you.