FASB proposal clarifies Statement no. 116 NPO transfer terms.FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Proposal Clarifies Statement no. 116 NPO NPO [L.] nil per os (nothing by mouth). NPO abbr. Latin nil per os (nothing by mouth) NPO Nothing by mouth Transfer Terms The Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). has proposed an interpretation of FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting no. 116, Accounting for Contributions Received and Contributions Made, that clarifies the terms "agent" "trustee" and "intermediary" Paragraph 4 of Statement no. 116 says that the statement "does not apply to transfers of assets in which the reporting entity acts as an agent, trustee or intermediary, rather than as a donor or donee The recipient of a gift. An individual to whom a power of appointment is conveyed. donee n. a person or entity receiving an outright gift or donation. DONEE. ." According to Corliss Montesi, FASB assistant project manager, a number of community foundations, foundations related to institutions, federated Connected and treated as one. See federated database and federated directories. fundraising organizations and other not-for profit entities had raised questions about the three tern,s. They wanted the FASB to differentiate situations in which an organization acts as an agent, trustee or intermediary from situations in which it acts as a donee and a donor, especially if it solicits and collects cash, products or services and distributes those or income from them to other organizations for charitable purposes. The exposure draft, Transfers of Assets in Which a Not-for-Profit Organization Acts as an Agent, Trustee, or Intermediary, defines "intermediary" in a narrow sense to refer to situations in which an organization facilitates the transfer of assets The conveyance of something of value from one person, place, or situation to another. The law recognizes that persons are generally entitled to transfer their assets to whomever they wish and for whatever reason. The most common means of transfer are wills, trusts, and gifts. between a potential donor and a potential donee but is not itself the recipient of a gift and, therefore, does not record contribution income or expense. According to the ED, "agent" and "trustee" are used to refer to other situations in which an organization acts on behalf of another or for the benefit of another but has not itself received a gift or made a gift. The ED also describes situations in which an organization is presumed to be acting as an agent or trustee. Although the comment period for this proposal has passed, anyone who wants to know what the FASB has in mind can order copies of the ED (product code no. E135) for $11.50 from the FASB Order Department, 401 Merritt 7, P.O. Box 5116, Norwalk, Connecticut 06856-5116; (203) 847-0700, ext. 555. |
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