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Board Of Directors Of Nonprofit Organizations

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Assignment 2 According to McLaughing (2010), the board of directors of a nonprofit organization can have many different responsibilities, which include but are not limited to, protecting the assets and liabilities of the organization. Moreover, the board of directors, along with organizational leaders, are responsible for ensuring the organization endures for the future. The board of directors of a nonprofit organization often makes decisions based on concepts and strategies. When it comes to the organizations assets the board is responsible for protecting them in hopes those assets will grow in the future. Therefore, the board makes recommendations on how assets are allocated, how to spend funds, as well as controlling expenditures. Additionally, Lesson 2 (2016) points …show more content…

According to Lesson 2 (2016), the chart of accounts refers to a list of different accounts which records the financial transactions of an organization, it facilities reporting by grouping like items together. Moreover, the chart of accounts helps organizations keep accurate records of their business transactions by organizing information. According to Cooper and Pattanayak (2011), the chart of accounts is crucial to organizational budget management; when there are mistakes associated with the chart of accounts it can have lasting effects on the organizations financial information, which is often used to make critical decisions. There are five main categories (assets, liabilities, equities, revenues, and expenses) in the chart of accounts and they are arranged based on the type of transactions. Assets refer to things the organization owns, liabilities are things the organization owes, whereas equity refers the overall growth of the organization. On the other hand, revenues refer to the monetary gains of the organization, and expenses is the money

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When being placed in the role of a manager, it is important to understand the finances of the organization and how to read and understand the recording of finances. It is also important to understand how all the different parts of the records fit together to give us the knowledge of where the business is financially. Knowing also the different responsibility centers related to financial recording and how they function is important as a manager. Once a manager understands what and where items belong on a balance sheet, they will better understand the state that the business is in. “It provides you with a picture of the financial health of your practice or organization on a certain date.”

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Also, expenses made

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Why does a board of directors have a chairperson? Each of these groups is founded on the principle that each member gets a vote and power is distributed. But in order to accomplish decisions and missions, these groups succeed when they have strong leaders. Not leaders who silence the members and assume all power - rather, leaders who direct, motivate and inspire the members to work harder. To progress, a community needs clear guidance from an effective leader who can be replaced if necessary.

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Board this is a large group of people which selected to act as stockholders for company development to achieve certain goals such as problem solving within company and employees, decision making, it helping to operate the business daily, providing direction goals of the business organization, establishing policy of the business if it the right service which they provide for the customers and their employees and government rules and assist them for future planning. The internal audit is the body belong of this company is the chairman which controls and providing business process data, management, obeying by demand laws and company rules reporting and right accommodation this board of company structure. CEO is the development role which help

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Development in both technology and information science has seen revolutionary changes in accounting. Today there are some programs aiding bookkeeping, reporting, and record of financial process within a business (Pal, 2014). The majorroles of an accounting system include; first, data collection and storage. An accounting system effectively and efficiently does storage (Pal, 2014).

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For examples, the chart of accounts is broken down into asset, liability, owner’s equity, revenue, and expenses accounts. Also, in the general ledger each account is accompanied by a reference number in logical order, and it is sorted in the order of the account numbers to make easy to locate an account. First in this task we review the company organization chart, which serve as the company framework for its accounting chart of accounts. I learned that consistency in the company is important, when creating a chart of account, because it setup an order to establish a consistent standard of comparison in a

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Define by the business dictionary, Nonprofit organizations(NPO) are associations, charities, cooperatives, and other voluntary organizations formed to further cultural, educational, religious, professional, or public service objectives. A large number of nonprofits are human service organizations providing services for those who in need of mental health, housing, and other helping services. NPOs are funded by a number of different sources, According to to the National Center for Charitable Statistics (NCCS), “over 1 million public charity nonprofits existed in the United States in 2009, funded by $1.4 trillion in revenues from contributions, gifts, and grants (22 percent); program service revenues, including government contracts and fees (67 percent) and other sources, including dues and special event income (11 percent)” (NCCS, 2010). Although the numbers do sound nice, the financial states of most nonprofits are not doing well, funding for social services and organizations are expected to decrease. Traditional ways of fundraising have become less productive, so NPOs are now left to find different ways to fund their organizations.

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Not only that but also directors are responsible to act in

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The Ignation Philanthropic Council is a student run organization. We distribute a sum of money to a variety of non-profit organizations. Being a part of the IPC has been an incredibly rewarding experience, and I really enjoy giving back to my community. Peer Tutor:

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117, Financial Statement of Not-for-Profit Organizations (SFAS 117) issued by the FASB, requires nonprofit organization expenses be reported in three categories: 1. Program 2. Management and general, and 3. Fundraising. Program Expenses (direct) are defined (in paragraph 27 of SFAS 117) as, "the activities that result in goods and services being distributed to beneficiaries, customers, or members that fulfill the purposes or mission for which the organization exists.

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They can make decision for the organization that lead them towards success. What recommendations will you make? Address… a. The full board as it stands b. a smaller decision making group empowered by the board, what is this called? c. committees of the board (?), for what functions (?) d. define communication methods to all physicians

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Characteristics of a Nonprofit Organization The term "Nonprofit" is a misnomer, as a nonprofit may legally and properly make a profit, as the concept is usually understood. The most important distinction between a profit and a nonprofit organization is whether the organization abides by the "non-distribution principle". A nonprofit operates for public purposes, not for private purposes. The earnings of a nonprofit may not be distributed to members, directors, or employees, and only reasonable compensation (such as salaries) is permissible.

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However, in personal finance, cash accounting is often used to define and account for events when the cash changes hands. This practically implies that in personal finance, incomes and expenses are noted when the cash is received or paid, or when the cash actually flows. In managing personal finance, the accounting process in crucial in that it records personal transactions of what flows in and what flows out. As checkbooks records most transactions with statement from bank carrying others, this accounting transaction information is summarized in financial statement and can easily be read most efficiently. Furthermore, the summary report of the income statement, cash flow statement, and balance sheet clearly show one’s personal financial status paving the way for better managing personal finance.

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A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that

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 Income data (experiences, estimates of sales, fund rising, membership etc and planned activities).  Data come from previous budgets, estimates, experience of others and public available statistics. I was also able to identify the main uses of accounting and these are as follow:  Information All organizations need to keep records of their financial transactions so that they can access Information about their financial position, including: summary of income and expenditure, the outcome of all operations, assets and liabilities.

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