Nonprofit Accounting: Introduction

Gone are the times, when it was enough for a nonprofit organization to focus on its programs and do well at its mission. With financial scams rocking the world, stakeholders don’t’ just want to know who you are helping.  More than ever, they now want to see proof of how wisely your nonprofit organization is […]

Restricted Contribution: Treatment in books

You will often come across the term ‘restricted contribution’ or ‘restricted net assets’ in balance sheet of nonprofit organizations. Not a very common sight in financial statements of ‘for-profit organizations’. This article explains meaning and treatment of ‘restricted net assets’ in the books of non-profit organizations. Meaning:  Some donors place restrictions on their contribution. Many […]

Sample Mission Statement: Top 20 Nonprofits

A sample collection of mission statement of 20 world’s largest, top and possibly best nonprofit organizations. Environmental Defense:   Mission Statement Environmental Defense Fund’s mission is to preserve the natural systems on which all life depends. Guided by science, we design and transform markets to bring lasting solutions to the most serious environmental problems. […]

‘Tax exemption’ Versus ‘tax deductible’

The terms ‘tax exemption’ and ‘tax deductible’ are not one and the same. ‘Tax-exempt’ implies that organization doesn’t have to pay taxes on its income.’Tax deductible’ means that a donor can claim tax deductions in his federal income tax return upto a certain proportion of the donated amount. A tax-exempt status does not always grant […]

How to Form a Cooperative: Steps Involved

Cooperatives are normally formed as corporations under respective state cooperative laws. The process of forming a cooperative is very similar to the process of incorporation. Like corporations, cooperatives are formed on organizing documents (articles) and governed by adopted bylaws. The following steps are generally involved in forming a cooperative STEP ONE: IDENTIFYING STATE LAWS FOR […]