Question

we explore the form and content requirements of financial statements of not-for-profit entities, as described by Financial Accounting Standards Board (FASB) Statement No. 117

• Identify and research one (1) not-for-profit organization and provide the Web link to the most recent financial report of the organization. The organization identified should include business and investment activities. Contrast the treatment of business type activities in the financial report of the not-for-profit entities and governments.Identify one (1) significant difference in accounting for investments by the not-for-profit and the for profit business.

Answer 1

Non-profit Organizations are firms which do not intend to earn profit out of any commercial or economic activity. These organizations are usually funded by the large financial houses and on the donations given the people worldwide and they work for the overall development of the underprivileged section of the society.

                              One of such Organizations id the Rotary Club. Rotary Club was founded in the beginning of the 19^th Century and today, it has grown to be one of the world’s largest and most active Non-Profit organizations. Rotary club not only is a non-profit organization but is considered one of the world’s largest donators of the world. It has its branches at all nook and corners of the world. This facilitates The Rotary Club to function from nearly every corner of the world. The financial decisions of the Club include its investments in to various sectors such as Natural resource extraction, Equities, Real Estate and in to banking services. These investment and financial services of Rotary Club are subjected to increasing its capital base, so that it can finance the development and support activities across the world in to many countries.

                                    The financial activities of the Rotary Club and its aims and objectives are I stark contrast to the Government. A Government has to ensure that it earns a satisfactory level of revenue from its investments and financial subjugations. The Government also has to ensure that it can support all the people of its country with its revenue and development activities. The Government ensures that all the people of the country are given due importance according to their need and accordingly, the Government carries out development and social service activities. Further, the Government also carries out social security schemes for the poorer section of the society. Whereas, the sole mote of the financial activities of the non-profit organizations is to acquire large sum of capital which can be further used for the development and social upliftment of the underprivileged. These non-profit organizations work most for the poorer section of the society and for their social rights. They do not investment for all the sections of the society. The social upliftment of the underprivileged is its primary goal.