Government entities often can have unique and complex reporting and organizational structures.

1. Government entities often can have unique and complex reporting and organizational structures. An example is History Colorado. History Colorado was originally established as a 501(c)(3) nonprofit corporation under the IRS Code, but it also is a state government entity that is required to follow government accounting standards. What financial reporting challenges do you think these types of entities face?

2. Why do you suppose many state colleges and universities establish a separate 501(c)(3) Foundation for fundraising activities? How are these Foundations typically reported in both the University's financial statements as well as those of the state?

3. What do you think are the main financial reporting differences between a privately-owned hospita versus a government hospital?

4. What is meant by "variance power?" Suppose that a charitable foundation receives a gift that the donor specifies must be used to support the college education of a particular individual. What is the relevance of "variance power" in how the foundation accounts for the gift?

5. Besides a Balance Sheet, Income Statement, and a Statement of Cash Flows, what additional financial statement is required to be presented by a Voluntary Health & Welfare Organization? Why is this statement required? Also explain the purpose of this statement and the elements required to be presented.

6. How and when does a not-for-profit entity report pledges?

7. What factors must a nonprofit consider when recognizing contributions?