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An accounting/business question...
by FluteHolder Sun Oct 19, 2014 5:14 pm
http://www.guidestar.org/organizations/13-6213516/american-civil-liberties-union-foundation.aspx
I was looking at financials of the ACLU thru this charity watch website. And as per the info given below, their expense exceeds their revenue. So how are they managing or surviving? Or it is a technical way to 'fix' the books to show they are running 'red'?
Total Revenue $64,046,363
Total Expenses $96,935,793
I was looking at financials of the ACLU thru this charity watch website. And as per the info given below, their expense exceeds their revenue. So how are they managing or surviving? Or it is a technical way to 'fix' the books to show they are running 'red'?
Total Revenue $64,046,363
Total Expenses $96,935,793
FluteHolder- Posts : 2355
Join date : 2011-06-03
FluteHolder- Posts : 2355
Join date : 2011-06-03
Re: An accounting/business question...
by tapori Sun Oct 19, 2014 5:43 pm
This means charity is running in to deficit and needs more funding. To fund deficit they might have been using accumulated surplus from past or borrowings or reserves.
tapori- Posts : 101
Join date : 2011-04-29
Re: An accounting/business question...
by Kris Sun Oct 19, 2014 6:00 pm
FluteHolder wrote:http://www.guidestar.org/organizations/13-6213516/american-civil-liberties-union-foundation.aspx
I was looking at financials of the ACLU thru this charity watch website. And as per the info given below, their expense exceeds their revenue. So how are they managing or surviving? Or it is a technical way to 'fix' the books to show they are running 'red'?
Total Revenue $64,046,363
Total Expenses $96,935,793
>>>Short answer: accumulated earnings from prior years. If this were a for-profit entity, that would be 'retained earnings' and will be in the Capital section of the Balance Sheet. I don't know if the term is the same for non-profits. I am also surprised by the term Revenue, which is standard-usage for 'for profit' entities.
Kris- Posts : 5460
Join date : 2011-04-28
Re: An accounting/business question...
by FluteHolder Sun Oct 19, 2014 6:09 pm
As per some definition, the accumulated surplus is the fund resulting in the undistributed earnings and profits from a corporation or company that is in excess of its capital stock.
How does a non-profit have accumulated surplus, borrowings or reserves?
The total revenue should include/give a snapshot of total income/donations/money received?
How does a non-profit have accumulated surplus, borrowings or reserves?
The total revenue should include/give a snapshot of total income/donations/money received?
FluteHolder- Posts : 2355
Join date : 2011-06-03
Re: An accounting/business question...
by Kris Sun Oct 19, 2014 6:48 pm
>>Ok, maybe 'accumulated surplus' is the term used for non-profits. I am rusty on this terminology -- too many years. The accumulation could have come from previous donations, unspent grant monies etc. I don't know what the sources are of their 'revenue' line item. I am guessing. Think of the accumulation as profits not spent in the case of a regular corporation. Only in this case, the 'profits' are not from selling products less costs and expenses, but donations less operating expenses.FluteHolder wrote:As per some definition, the accumulated surplus is the fund resulting in the undistributed earnings and profits from a corporation or company that is in excess of its capital stock.
How does a non-profit have accumulated surplus, borrowings or reserves?
Kris- Posts : 5460
Join date : 2011-04-28
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