Sie sind auf Seite 1von 27

NGOs/NPOs

An Overview
Non Government Organization
A non-governmental organization (NGO) is
any non-profit, voluntary citizens' group
which is organized on a local,
national or international level.
Not for Profit Organization
A non-profit organization is a group organized
for purposes other than generating profit
and in which no part of the organization's income
is distributed to its members, directors, or officers.
What does NPOs and
NGOs have in common?

World Bank describes these organizations as


groups and institutions that are entirely or
largely independent and that have primarily
humanitarian or cooperative rather than
commercial objectives.
Four Types of Not-For-Profit Organizations:

Professional Organizations Educational Institutions

Hospitals Cooperatives
A professional
association (also called a
professional body,
professional
organization, or
professional society) is
usually a nonprofit
organization seeking to
further a particular
profession, the interests
of individuals engaged in
that profession and the
Professional Organizations
public interest.
An education institution
is a place where people
of different ages gain
an education, including
preschools, childcare,
elementary schools,
and universities. They
provide a variety of
learning environments
and learning spaces. Educational Institutions
A hospital is a health
care institution providing
patient treatment with
specialized staff and
equipment.

Hospitals
A co-operative (also
known as co-op,
cooperative or coop) is
an autonomous
association of people
united voluntarily to
meet their common
economic, social and
cultural needs and
aspirations through a
jointly owned and
democratically Cooperatives
controlled business.
Can you describe the
Accounting system of an
NGO/NPO?
An NGO/NPO typically uses Fund Accounting as
an accounting system. On the other hand, a
special standard is used in preparing the set of
financial statements required for each of these
organizations.
Fund Accounting
Fund accounting refers to the
management and allocation of
revenue an organization acquires
through donations, tax payments,
grants and other public and private
sources. The basic idea behind fund
accounting is to monitor and
document the use of assets that are
donated by outside parties.
Types of Funds in Fund Accounting:
General Special Fund
Fund
Resources that Receipts or
are for financing resources that
the are to be used in
normal/general the special
activities in the activities such as
operations of the publication of a
service periodic journal
organization are or construction of
designated in this a building for the
fund. unit are
designated in this
fund.
Fund Accounting
Each fund group calls for a separate set of
self- balancing accounts.
Nominal accounts are also created for
each fund group if different revenue and
expenditures affect a fund balance.
Financial Reports are prepared for each
fund group.
In many cases, locally, combined Financial
Reports are prepared.
What are the financial
reports required for the
NGOs/NPOs?
United States Statement of Financial Accounting
Standards No. 117 and Asia Pacific Philanthropy
Consortium Accounting Guide for Non-Profits
requires three Financial Reports namely:
Statement of Financial Position, Statement of
Activities, and Statement of Cash Flows.
Financial Reports for NGOs/NPOs:
According to SFAS 117 Primary
purpose of Financials Statements for
NPOs is to provide relevant information
to meet common interests of
stakeholders.
Financial Reports for NGOs/NPOs:
Specific purpose of Financial Statements, including
accompanying notes, is to provide information
about:
a)Amount and nature of an organizations
assets, liabilities, and net assets
b)Effects of transactions and other events and
circumstances that change the amount and
nature of net assets
c)Amounts and kinds of inflows and outflows of
economic resources during a period and the
relation between inflows and outflows.
Financial Reports for NGOs/NPOs:
Specific purpose of Financial Statements, including
accompanying notes, is to provide information
about:
d) How an organization obtains and spends
cash, its borrowings and repayment of
borrowing, and other factors that may affect
its liquidity
e) The service efforts of an organization
Financial Reports for NGOs/NPOs:
Statement of Financial Position

This Statement
shows the
assets,
liabilities, and
net assets of a
not-for-profit
organization
Financial Reports for NGOs/NPOs:
Statement of Financial Position
Separate line items may be reported within
permanently restricted net assets or in the
notes to financial statements to distinguish
between permanent holdings of:
Assets to be used only for a specified
purpose, be preserved and not be solved; or
Assets donated with stipulations that they be
invested to provide permanent source of
income.
Financial Reports for NGOs/NPOs:
Statement of Financial Position
Separate line items may be reported within
temporarily restricted net assets or in the
notes to financial statements to distinguish
between temporary restrictions of:
Support of particular operating activities;
Investment for a specified term;
Use in specified future period; or
Acquisition of long-lived assets.
Financial Reports for NGOs/NPOs:
Statement of Activities:

This statement
shows the
revenue, gains,
expenses, and
losses.
Financial Reports for NGOs/NPOs:
Statement of Activities:
The primary purpose of a statement of
activities is to provide relevant information
about:
The effects of transactions and other events
and circumstances that changes the amount
and nature of net assets
The relationship of those transactions and
other events and circumstances to each
other, and
How the organizations resources are used in
Financial Reports for NGOs/NPOs:
Statement of Cash Flows:

Provides
relevant
information
about the cash
receipts and
cash payments
of an
organization
APPC (Asia Pacific Philanthropy Consortium):
Accounting Guide for Non-Profits
Financial Accounting Standards for Non-Profit
Organizations
A product of various consultations and conferences
among eight (8) Asian societies to be used by NPOs
in the region.
Primary purpose is to provide concrete guidelines in
the accounting of NPO transactions
Objectives of financial reporting, basic assumptions,
qualitative characteristics of financial statements,
accounting elements, recognition and measurement
criteria are all patterned after the framework to IFRS.
APPC (Asia Pacific Philanthropy Consortium):
Accounting Guide for Non-Profits
APPC (Asia Pacific Philanthropy Consortium):
Accounting Guide for Non-Profits
APPC (Asia Pacific Philanthropy Consortium):
Accounting Guide for Non-Profits