A Terms
B Terms
C Terms
D Terms
E Terms
100
Assets
An item of current or future economic benefit to an organization.
100
BALANCE SHEET
Statement showing an organization's financial position (assets, liabilities and net assets)
100
CASE STATEMENT
A case for support, written primarily for a capital campaign, that outlines an organization's history, current status, future plans, including facility plans, and fundraising objectives.
100
DEFICIT
The excess of expenses over revenue during an accounting period.
100
EXPENSES
Represent the total cost of operating the organization
200
APPRAISAL
A formal report usually created by a certified real estate appraiser evaluating a real estate property in order to determine its value.
200
BRIDGE LOAN
Loan made on a short-term basis in anticipation of being paid out by permanent or long-term funding
200
CAPITALIZATION
The distribution, nature and magnitude of an organization’s assets, liabilities and net assets. Also known as capital structure.
200
DEFAULT
There are two types of default: Debt service default occurs when a borrower fails to make a scheduled payment of interest or principal on a loan. Technical default occurs when a covenant of the loan is violated.
200
ECONOMICS
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
300
ACCRUED EXPENSES
Items incurred during an accounting period for which payment is postponed. Examples include accrued salaries, accrued sales tax payable, and accrued rent payable.
300
BY LAWS
A document outlining the governance of and what activities a legal entity may or may not engage in, including defining the officers, outlining the board composition and terms, the frequency of board meetings, the authority to enter into contracts for borrowing money and other purposes, and the number of signatures required to bind the entity legally.
300
COLLATERAL
Asset pledged to a lender until a loan is repaid; also called security.
300
DBA
Doing business as (assumed name)
300
EQUITY
Represents the difference between an asset's market value and the amount of debt associated with that asset. Also refers to the amount a developer or owner invests in a project.
400
ACCUMULATED DEPRECIATION
The total amount the value of fixed assets has decreased to date due to general wear and tear or obsolescence.
400
BASIS POINTS
A fraction of a percentage point, equal to one one-hundredth of a percent. Used to describe interest rates; i.e., 50 basis points is the same as ½%.
400
CLOSING COSTS
Expenses involved in transferring real estate from a seller to a buyer, including lawyer's fees, survey charges, title searches and insurance, and fees to file deeds and mortgages.
400
DEPRECIATION
A non-cash expense associated with reducing a fixed asset’s book value due to general wear and tear over its defined accounting or useful life. Depreciation is only an approximation of the amount needed to replace fixed assets.
400
ENDOWMENT
Also called investment reserves. Typically represents donated capital that is kept intact (and grown) to generate investment income.
500
AMORTIZATION
Repayment of loan principal and interest. A loan can be amortized in several ways, including: (a) in equal installments of principal and interest, often called “mortgage amortization,” where the interest component of the payment reduces as the principal is paid down; (b) in regular payments of varying amounts, often called “commercial amortization,” which result from paying off a constant principal each installment plus interest on the amount of principal owed; and (c) in very irregular principal payments plus interest, often incorporating a larger final payment.
500
BALOON
Final payment of a loan which is larger than the previous payments, arising when the amortization is longer than the maturity of the underlying note
500
CLEAN-UP
Term used to describe the requirement by the lender that a line of credit be completely paid out for a pre-defined period, usually a minimum of 30 days, during a one-year cycle.
500
DEFERRED REVENUE/INCOME
Payment received from a client for a transaction that has not yet occurred (e.g., subscription purchase for performances held on future dates).
500
ECONOMIES OF SCALE
Theory that the more you produce of a good or service, the less it costs for each additional unit
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