Understanding the Statement of Cash Flow for Private Not-for-Profit Entities

📊Private not-for-profit entities follow the Financial Accounting Standards Board (FASB) guidelines, including the statement of cash flows.

💰The statement of cash flows for private not-for-profit entities includes operating, investing, and financing activities.

💼Operating activities include funds received without donor restrictions, while financing activities include long-term restricted assets.

📈Investing activities involve the purchase of real estate or equipment using restricted funds.

🎁Non-cash gifts of goods or services are categorized as non-investing and non-financing activities.

What are the three main categories in the statement of cash flows for private not-for-profit entities?

—The three main categories are operating, investing, and financing activities.

What does operating activities include?

—Operating activities include funds received without donor restrictions, such as donations, employee expenses, and supplier payments.

What does financing activities include?

—Financing activities include funds received from long-term restricted assets, such as endowments, lawsuit settlements, and proceeds from the sale of gifted assets.

What does investing activities involve?

—Investing activities involve the purchase of assets, such as real estate or equipment, using restricted funds.

What are non-cash gifts of goods or services categorized as?

—Non-cash gifts of goods or services are categorized as non-investing and non-financing activities.

00:00Private not-for-profit entities follow the Financial Accounting Standards Board (FASB) guidelines for their financial reporting.

00:56The statement of cash flows for private not-for-profit entities includes three categories: operating, investing, and financing activities.

01:40Operating activities involve funds received without donor restrictions, such as donations and employee expenses.

03:19Investing activities include the purchase of assets, such as real estate or equipment, using restricted funds.

06:10Financing activities involve funds received from long-term restricted assets, such as endowments and lawsuit settlements.

07:45Non-cash gifts of goods or services are categorized as non-investing and non-financing activities.