SPECIFIC TYPES OF ORGANIZATIONS in .NET

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353 SPECIFIC TYPES OF ORGANIZATIONS
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Factors Whose Presence Indicate Recording by C as Revenue and Expense May Not Be Appropriate 13 C makes pledges to R, payment of which is contingent on receipt of gifts from D 14 C was created only shortly prior to receiving the gift, and/or C appears to have been created speci cally for the sole purpose of passing gifts from D on to R
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Factors Whose Presence Indicate Recording by C as Revenue and Expense May Be Appropriate
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Factor not present Factor not present
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Factors especially relevant to gifts-in-kind:
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15 C never takes physical possession of the gift at an owned or rented facility 16 The nature of the items is not consistent with the program service activities of C as stated in its Form 1023, 990, organizing documents, fund-raising appeals, annual report 17 The gift was not solicited by C 18 The quantity of items is large in relation to the foreseeable needs of C or its donees 19 Factor not present C does have physical possession of the items at some time, at a facility normally owned or rented by it The nature is consistent with C s stated program activities
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C speci cally solicited the particular items from D Factor not present Members of the board or staff of C have speci c technical or professional expertise about the items, and actively participate in deliberations about where to obtain the items and how best to use them C has several potential or actual sources for the item Same for R Factor not present C adds value to the items by sorting, repackaging, cleaning, repairing, or testing them Either C or both D and R have signi cant program services other than distribution of gifts in kind Factor not present Factor not present
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20 D appears to be the only source from which C considers acquiring the item Same for C/R 21 C receives numerous types of items dissimilar in their purpose or use 22 C receives items from D and passes them on to R in essentially the same form 23 C and either or both of D and R have little in the way of program services other than distribution of gifts in kind to other charities 24 The value assigned to the items by D or C appears to be in ated 25 There is a consistent pattern of transfers of items along the same chain (D to C to R, etc) 26 Factor not present
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C incurs signi cant expenses (freight, insurance, storage, etc) in handling the items
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Factors
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considered to be generally more signi cant
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Exhibit 353 Continued
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NOT-FOR-PROFIT ORGANIZATIONS
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NATIONAL ASSOCIATION OF ENVIRONMENTALISTS STATEMENT OF CASH FLOWS For the Year Ended December 31, 20XX Operating cash ows: Cash received from: Sales of goods and services Investment income Gifts and grants: Unrestricted Restricted Cash paid to employees and suppliers Cash paid to charitable bene ciaries Interest paid Net operating cash ows Financing cash ows: Nonexpendable gifts Proceeds from borrowing Repayment of debt Net nancing cash ows Investing cash ows: Purchase of building and equipment Purchase of investments Proceeds from sale of investments Net investing cash ows Net increase in cash Cash: Beginning of year End of year Reconciliation of Excess of Revenues over Expenses to Operating Cash Flows: Excess of Revenues over Expenses Add: Depreciation expense Less: Appreciation of investments Changes in: Receivables Payables and deferred income Nonexpendable contributions Operating cash ows Exhibit 354
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$ 198,835 14,607 230,860 37,400 (265,854) (83,285) (350) 132, 213 31,500 5,000 (5,000) 31, 500 (38,617) (60,000) 50,000 (48, 617) 115,096 11,013 $ 126, 109
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$ 161,316 13,596 (33,025) (6,939) 28,765 (31,500) $ 132, 213
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Statement of Cash Flows, derived from data included in Exhibits 355 and 356
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will also be found elsewhere in this chapter For example, a full discussion of accounting for contributions is in Subsection 352(j)(iii) (a) VOLUNTARY HEALTH AND WELFARE ORGANIZATIONS The term voluntary health and welfare organization rst entered the accounting world with the publication in 1964 of the rst edition of the so-called Black Book, Standards of Accounting and Financial Reporting for Voluntary Health and Welfare Organizations, by the National Health Council and the National Social Welfare Assembly The term has been retained through two successor editions of that book and was used by the American Institute of Certi ed Public Accountants in the title of its audit guide, Audits of Voluntary Health and Welfare Organizations, rst published in 1967 In 1974, the AICPA issued a revised Audit Guide, prepared by its Committee on Voluntary Health and Welfare Organizations This Audit Guide was prepared to assist the independent auditor in examinations of voluntary health and welfare organizations Voluntary health and welfare organizations are those not-for-pro t organizations that derive their revenue primarily from voluntary contributions from the general public to be used for general
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