Ghosts of Accounting Past
What accounting method is most commonly used by nonprofits?
What is accrual accounting?
This form must be filed annually by most tax-exempt organizations.
What is Form 990?
This type of budget includes both fixed and variable costs.
What is a flexible budget?
These funds can only be used for specific purposes.
What are restricted funds?
This IRS designation allows donors to deduct contributions.
What is 501(c)(3)?
This spooky statement shows revenues and expenses over time.
What is a statement of activities?
What is the penalty for failing to file Form 990 three years in a row?
What is automatic revocation of tax-exempt status?
This budgeting method starts from zero each year.
What is zero-based budgeting?
These funds are free to be used at the nonprofit’s discretion.
What are unrestricted funds?
This spooky rule limits lobbying activities for nonprofits.
What is the substantial part test?
This haunting document shows a nonprofit’s financial position at a specific point in time.
What is a statement of financial position?
This IRS letter confirms a nonprofit’s tax-exempt status.
What is a determination letter?
This potion-like document forecasts income and expenses.
What is an operating budget?
This monster tracks how funds are allocated and spent.
What is fund accounting?
This form is used to report unrelated business income.
What is Form 990-T?
This eerie term refers to the process of matching revenues with expenses.
What is the matching principle?
This chilling requirement mandates that nonprofits disclose any related party transactions in their financial statements.
What is related party disclosure?
This budget type is used for specific projects or programs.
What is a program budget?
This creepy concept separates financial activity by purpose.
What are cost centers?
This trick ensures donations are properly acknowledged.
What is a donor receipt?
This ghostly concept ensures financial statements are free from material misstatement.
What is audit assurance?
This compliance requirement ensures transparency in fundraising.
What is donor disclosure?
This mystical process aligns budgeting with strategic goals.
What is strategic budgeting?
This term refers to the process of allocating indirect costs.
What is cost allocation?
This tax-related spell allows nonprofits to avoid sales tax in some states.
What is a sales tax exemption certificate?