The accumulated fund, or capital fund, is a reserve held by non-profit organizations like clubs or societies, reflecting a surplus of income over expenditure, or a deficit when expenditures exceed income. Its value can be determined by valuing the net assets of the organization.
A capital fund is a financing source specifically allocated for long-term initiatives, large projects, or investments, often used by non-profit organizations, governments, or businesses to support development and growth initiatives.
A charitable trust is a type of trust that is established to provide financial support to one or more charitable organizations, aimed at fulfilling philanthropic goals and benefiting the public.
A company structure where the liability of members is limited to a predetermined amount they agree to pay in the event of liquidation. This type of company does not issue shares to its members and differs significantly from other company structures like limited companies.
An account primarily used by non-profit organizations to record and summarize their income and expenditures, leading to a calculation of surplus or deficit without applying the accruals concept.
The International Valuation Standards Council (IVSC) is an independent, non-profit organization that sets global standards for the valuation profession.
A budgeting system developed particularly for use in non-profit organizations, such as national and local government. The system is based on the grouping together of activities with common objectives and a long-term plan relating to the objectives of the organization as a whole, which is subdivided into programs. Conventional annual expenditure budgeting procedures are applied within this framework.
Public Interest Research Groups (PIRGs) are independent, non-profit organizations that promote consumer rights, the environment, and good government through advocacy and research.
A tax exemption refers to a statutory provision which reduces or eliminates the obligation to pay a financial charge (tax) that would otherwise be imposed by a governing body.
The third sector encompasses non-governmental, not-for-profit organizations, differentiating it from both the profit-making private sector and the governmental public sector.
An unincorporated association is a group of individuals who come together for a common purpose but do not form a corporation or any other legal entity. Their structure lacks a separate legal personality, meaning any legal actions must be taken against the individual members rather than the association itself.
Understanding the concept of Unrelated Business Income (UBI) which refers to the income generated from activities unrelated to a not-for-profit organization's tax-exempt purpose. A corporate tax is applied to such income to ensure fair competition with taxable organizations.
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