Introduction to Not for Profit Entities

Question 1

What are the four main categories of NFP Organizations? (Remember these are private not public)

Answer 1

• Hospitals and Health Care Entities
• Colleges, Universities, & Educational Organizations
• Voluntary Health and Welfare Organizations
• Other NFP Organizations

Question 2

What’s the basis of accounting for NFP Organizations? Primary objective?

Answer 2

• Full accrual

- Disclose source of resources and how they were expended