Understanding Accounting for Private Not-For-Profit Organizations

📊Private not-for-profit organizations follow Financial Accounting Standards Board (FASB) guidelines.

🔒Net assets are classified into 'with donor restrictions' and 'without donor restrictions'.

📜Financial statements for private not-for-profit organizations include the statement of financial position, statement of activities, and statement of cash flows.

👥The users of financial statements for private not-for-profit organizations include donors, the community, and lenders.

👀Board-designated restrictions and donor restrictions are important factors in determining the use of net assets.

What accounting standards do private not-for-profit organizations follow?

—Private not-for-profit organizations follow the Financial Accounting Standards Board (FASB) guidelines.

How are net assets classified for private not-for-profit organizations?

—Net assets are classified into 'with donor restrictions' and 'without donor restrictions'.

What are the key financial statements for private not-for-profit organizations?

—The key financial statements are the statement of financial position, statement of activities, and statement of cash flows.

Who are the users of financial statements for private not-for-profit organizations?

—The users include donors, the community, and lenders.

What are board-designated restrictions and donor restrictions?

—Board-designated restrictions are internally determined restrictions, while donor restrictions are restrictions imposed by the donors of the organization.

00:00Introduction to accounting for private not-for-profit organizations.

00:02Differentiating private not-for-profit organizations from governmental organizations.

00:04Importance of understanding accounting for private not-for-profit organizations.

00:08Highlighting the Financial Accounting Standards Board (FASB) guidelines for private not-for-profit organizations.

00:13Explaining the differences between net assets with and without donor restrictions.

00:18Overview of the key financial statements: statement of financial position, statement of activities, and statement of cash flows.

00:24Discussing the users and purposes of financial statements for private not-for-profit organizations.

00:32Exploring board-designated restrictions and donor restrictions and their impact on the use of net assets.