NFP Project Assignment | Get Homework Help

Project 3: Analysis of the Form 990 for Not-for-Profits (NFPs) (10%) 1. Select a recent IRS Form 990 for a NFP entity. The www.foundationcenter.org web site will be helpful to locate an entity and Form 990. Present your choice in the conference set up for same for approval by stating the NFP’s name in the conference, and uploading / attaching the NFP’s most recent Form 990 in PDF format. Only approved entities / Form 990s will be accepted. 2. Explore the concepts of the class material relating to NFPs and Form 990s. You must find and review / read outside literature on these subjects as well and use and reference them in your paper. 3. Prepare an executive summary paper on the Form 990 to include the following: a. A brief overview of your entity. b. Discuss what a Form 990 is, what is its focus, what are its major sections and requirements, and what it’s intended to do. c. Discuss who are the Form 990’s intended users – who and why is the form intended for (what is NOT expected is a fund-by-fund accounting of figures, performance, balances, etc.). d. Finally, compare the Form 990 to your NFP entity’s annual report (if they don’t have one, find an annual report from another NFP) and discuss the different audiences / needs / users / purpose of same. 4. Your deliverable is to be three – five pages in length (~1,000 to 1,800 words), single-spaced, double spacing between paragraphs, one inch margins and a font size of 10 – 12 points. Use headings related to topics in our class, and include a cover page and works cited section. In-text citations for all facts must be included and done per APA standards. The paper is to be uploaded through your assignment folder only in a single Word document with only “YourName.doc(x)” as the file name. There are to be no active hyperlinks anywhere in the submission. 5. Points will be deducted for failing to adhere to these requirements, especially the 4 requirements in part 3. 6. Please refer to the grading matrix for how your performance will be evaluated

 

NFP PAPER

 

 

 

 

RP

                                                                        UMUC

ACCT 424

 

 

 

                         

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

History of Animals’ Angels, MD

           

Founded in 2007, Animals’ Angels Inc. (AA) is a non-profit organization incorporated in Maryland with full-time investigators working in the United States. Their focus is primarily on improving conditions for farm animals and horses. AA has been a driving force against horse slaughter since 2007.  Some of their core competencies include;

• Working primarily in the field.
• Trailing livestock trucks on highways,
• Visiting markets and auctions,
• Collecting stations, and slaughterhouses.

Part of their initiative is to presents their investigation results to auction and slaughter plant management to encourage positive change in the way farm animals are handled during transportation, at auction, and at slaughter. They also share our investigations and documentation of cruelty with law enforcement and government agencies to ensure that violators of animal protection laws are held responsible for their actions. In 2017, AA was awarded the GuideStar platinum seal of excellence –

 

 

 

Financial Overview

AA works with a professional fund-raising firm to assist them in raising support for their programs. The organization’s main source of revenue was derived in the form of contributions, furthermore, AA receives more than 33 1/3% of its support from;

• Membership fees.
• Gross receipts from activities.

At December 31, 2017 and 2016, the organization reported contributions of $876,433 and $1,163,532, respectively. Though a drop from 2016, the organization’s expenses decreased significantly in each section of functional expense and overall, as seen in exhibit.

 

(Exhibit 1. AA, 2017)

Furthermore, AA’s reported a financial position at year end 2017 as follows;

(Exhibit 2. AA, 2017)

• It is also important to note that the program services expense for AA for the period was $769,246, while total expenses added to $906,993, while program expense ratio for the FY 2017 was 84.81%, though Calculating this ratio from financials in comparison to form 990 failed at providing any different or alarming results. Additionally, Fund raising expenses added to $90,974, with the fund-raising expense ratio of 10.03% for FY 2017. On the other hand, salaries formed the largest expense by AA totaling at $211,238 (2017).

For FY ending 2017, the organization had no temporarily restricted or permanently restricted net assets. Nonetheless, Animals’ Angels presented its financial statements in conformity with Generally Accepted Accounting Principles (GAAP).

 

Accounting Standards

Though Animals’ Angels, Inc. (the Organization) is a 501 (c) (3) non-profit corporation in the state of Maryland, it is important to note the accounting policies elected by the organization, of which include;

1. a) Basis of Accounting
   The organization’s financial statements were prepared on the accrual basis of accounting.
2. b) Basis of Presentation
   The organization’s net assets and changes therein were classified and reported as follows:

Unrestricted – Net assets that are not subject to donor-imposed stipulations.

Temporarily Restricted – Net assets subject to donor-imposed stipulations that will be met either by fulfillment of the restriction and/or the passage of time.

Permanently Restricted – Net assets subject to donor-imposed stipulations that are maintained permanently by the Organization.

AA states that revenues are reported as increases in unrestricted net assets, unless the use of the related assets is limited by donor-imposed restrictions in which case increases are reported as temporarily or permanently restricted net assets as appropriate. Expenses are reported as decreases in unrestricted net assets. Expenditures that meet donor-imposed restrictions are reflected as net assets released from restrictions. Nonetheless, it is noted that the organization had no temporarily restricted or permanently restricted net assets as of December 31, 2017.

1. c) Cash and cash equivalents
   Cash and cash equivalents include cash on deposit with all financial institutions maintained by the organization.
2. d) Investments
   Investments were recorded at their fair value at year end, while the unrealized loss on investments is reflected in the statement of activities.
3. e) Property and equipment
   AA stated that their property and equipment is recorded at cost if purchased or at its fair market value at the date of gift if it was donated. Nonetheless, the organization reports that depreciation for property and equipment is computed using the straight-line method over the lives of the assets, ranging from five to ten years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reference:

 

 

AA form 990. Retrieved September 25, 2018, from http://990s.foundationcenter.org/990_pdf_archive/208/208780367/208780367_201712_990.pdf

 

AA (2017) Annual Financial Report. Retrieved October 8, 2018 from
http://www.animalsangels.org/sites/animalsangels.org/files/images/stories/pdf/AA%20Financial%20statements%202017%20-%20FINAL.pdf