Article: Non-Profit Organizations - What Are They?
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Non-Profit Organizations - What Are They?
Definition of Fund; Assets; and Fund Balance
According to the ?Financial and Accounting Guide for Not-For-Profit Organizations? written by CPAs Gross, Larkin, Bruttomesso, and McNalley, (fifth edition, pg 25) the definition of a these three terms is as follows:
- A fund is any part of an organization for which separate account records are kept.
- Assets are valuable things owned or controlled by the organization. Types of assets include cash, investments, property, and amounts owed to the organization.
- Fund balance is the mathematical number obtained by subtracting total liabilities from total assets; it is a numerical representation of the net worth of the organization, but has no other significance. Fund balances do not exist ...
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