TaoTalk.org
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Go down
avatar
Posts : 66
Join date : 2022-10-27
View user profile

What is nonprofit accounting? Empty What is nonprofit accounting?

Thu Nov 24, 2022 11:36 am
It is a style that effectively tracks a nonprofit organization's expenses and developments. Since nonprofit organizations do not make a profit, their accounting practices focus on distinct metrics and use different evaluation methods than traditional for-profit businesses.

Restricted funds: The nonprofit has to spend restricted funds on specific, pre-determined organizational activities and programs.
Temporarily restricted funds: Temporarily restricted funds function as restricted funds for a set time frame, but once that time frame passes, then the nonprofit has more freedom in how they use those funds.
Unrestricted funds: Nonprofit employees can use unrestricted funds in any way they want for the organization. Some nonprofits call their unrestricted funds their annual fund.
avatar
Posts : 64
Join date : 2022-10-27
View user profile

What is nonprofit accounting? Empty Re: What is nonprofit accounting?

Fri Nov 25, 2022 3:02 pm
This reminds me of watching a youtube video which showed high-earning priests whose followers are millionaires and billionaires. That priest was living in a mansion while driving a Porsche. He claimed to be running a non-profit all the while making quite a significant profit for his personal lifestyle. I am amazed by what people do to hide their personal agenda and how low they can fall.
avatar
Posts : 21
Join date : 2022-10-27
View user profile

What is nonprofit accounting? Empty Re: What is nonprofit accounting?

Today at 4:13 pm
Thank you for bringing attention to the unique accounting practices of nonprofit organizations. As you mentioned, nonprofits do not operate with the goal of making a profit, so their accounting practices and evaluation methods are different from those of traditional for-profit businesses. The concept of restricted, temporarily restricted, and unrestricted funds is an important one in nonprofit accounting. Restricted funds must be used for specific pre-determined activities and programs, while temporarily restricted funds are restricted for a set period of time before becoming unrestricted. Unrestricted funds can be used in any way that benefits the organization.

Back to top
Permissions in this forum:
You cannot reply to topics in this forum