Showing posts with label questions.... Show all posts
Showing posts with label questions.... Show all posts
Monday, September 29, 2008
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key terms
- • Assets: A charity's assets include cash, savings, investments, property, and other items of ownership with an exchange value.
- • Charity – A charity exists to serve a societal group mission, and does not pursue self-interest or pay out profit to individuals. It is recognized by the IRS as tax-exempt and eligible to receive tax-deductible contributions.
- • Compensation: Using information reported on an organization's most recent Form 990, we include as compensation an individual's salary, cash bonuses, and expense accounts and other allowances.
- • Expenses – A charity’s expenses include spending on such things as salaries, supplies, equipment, travel, and conferences. Also including the value of donated goods that a charity distributes.
- • Income statements – Shows the breakdown of a charity’s revenue and expenses, its payments to affiliates, excess or deflect, and total net assets reported in the most recent fiscal year.
- • Liabilities – debt for which the charity is legally responsible for.
- • Net Assets: The difference between a charity's assets and its liabilities.
- • Non-profit – this exists to serve societal or group mission, and does not pursue self-interest or pay out profit to individuals.
- • Revenue: Charities can derive revenue or funding from a variety of sources, including contributions, program services, membership dues, interest on savings, investment income, special events, and sales of inventory.
- • Working Capital Ratio: Determines how long a charity could sustain its level of spending using its net liquid assets, or working capital, as reported on its most recently filed Form 990.