Glossary

Accounts Payable: The amount owed by the organization to outside sources for items and services.

Accounts Receivable: Unpaid money owed to the organization from outside sources for services rendered.

Audited Statements: An evaluation by an independent auditing firm of a nonprofit organization's financial position.

Charitable Trust Number (CT Number): A Charitable Trust Number is assigned to each nonprofit organization that registers with the Attorney General's Registry of Charitable Trusts to operate in California.

D.B.A. (Doing Business As): An alternative name or trade name used by a business. For example, Philanthropic Research, Inc. does business as "GuideStar."

Deferred Revenue: Money that the organization has received, but has not yet earned as of the closing date on the balance sheet. The amount is carried as a liability until the organization provides the goods or services for which the money was received.

Direct public support: Contributions, gifts, grants, and bequests received directly from the public. Includes amounts received from individuals, trusts, corporations, estates, foundations, public charities, or raised by an outside professional fund-raiser.

Employer Identification Number (EIN): A nine-digit number assigned by the Internal Revenue Service. Every IRS-designated tax-exempt nonprofit organization has its own EIN.

Fiscal Year: A 12-month period for which an organization plans the use of its funds.This period may be a calendar year but can be any 12-month period. A fiscal year accounting period should normally coincide with the natural operating cycle of the organization. If an organization files an IRS Form 990, it is required to define its accounting period on Line A at the top of the form.

Fixed Assets: Estimated value of land, buildings, equipment, and other tangible items owned by the organization.

Form 990: IRS Form 990 is an annual document used by approximately one-third of all public charities to report information about their finances and operations to the federal government. GuideStar uses data from Form 990 to populate its database with financial information about nonprofit organizations. Posting Form 990 images on the GuideStar Web site is an ongoing process. If a Form 990 image is available for your selected charity, you will see a "Form 990" button on the left side of its GuideStar Page.

Fund-raising Expense: Total expenses incurred in soliciting contributions, gifts, grants, etc.

GBFS (GuideStar Basic Financial Statement): A short online financial statement that nonprofits can complete if they do not file IRS Form 990 or 990-EZ. This form provides a simple balance sheet of an organization's expenses and revenues.

GIF (GuideStar Information Form): The GuideStar Information Form (GIF) is an online questionnaire that allows you to give GuideStar visitors the full story of your organization. Complete the GIF to update the information that already appears for your organization.

Government Grants: Payments from the government to a nonprofit organization to further the organization's public programs.

Grants Payable: Unpaid amount of grants or awards that an organization plans to pay other organizations or individuals.

Gross Profit from Inventory Sales: Gross sales, less returns and allowances, from the sales of items the organization either makes to sell or buys for resale.

Income: Money that the organization has received from contributions, grants, the performance of services, etc. GuideStar takes this figure from line 12 of IRS Form 990 or from the GuideStar Financial Statement completed by the organization. These are net figures from which rental expenses, costs, sales expenses, direct expenses, and costs of good sold (lines 6b, 8b, 9b, and 10b on Form 990) have been deducted. If GuideStar currently has neither Form 990 information nor a GuideStar Financial Statement for the organization, the figure is taken from the IRS Business Master File. Income listed on the Business Master File is a gross figure that includes the expenses listed above.

Indirect Public Support: Contributions received indirectly from the public (1) through solicitation campaigns conducted by federated fund-raising agencies or organizations such as the United Way; (2) from a parent organization or another organization with the same parent; or (3) from a subordinate organization.

Inventories for Sale or Use: Estimated value of materials, goods, and supplies purchased or manufactured by an organization and held for sale or use at some time in the future.

Management and General Expense: Expenses for the general functioning of the organization but not related to fund-raising or programs. Such expenses include the salaries of the chief officer and the chief officer's staff for activities not related to fund-raising or programs. Other costs include those associated with meetings of the board of directors or similar governing group; legal services; accounting; liability insurance; office management; auditing; personnel; preparation, publication, and distribution of an annual report; and investment expenses not related to programs or rental income.

Membership Dues and Fees: Members' and affiliates' dues or fees that are not contributions.

Mission: The main purpose for which an organization exists.

Net Gains from Non-Inventory Sales: Securities, real estate, royalty interest, partnership interest, all other non-inventory assets (such as program-related investments and fixed assets used by the organization in its related and unrelated activities), less costs, depreciation, and selling expenses.

Net Income from Special Events: Income earned from all special fund-raising events and activities, less costs.

Net Rental Income: Rental income earned from all non-program-related property, less costs.

NTEE Code: National Taxonomy of Exempt Entities Code, created by the National Center for Charitable Statistics; A classification system for nonprofits that divides the nonprofit world into categories.

Operating Programs: Programs and activities by which the organization accomplishes its mission.

Pledges & Grants Receivable: Funds promised to an organization from grantmakers, individual donors, etc., but not yet received.

Program Services Revenue: Fees and other monies received by an organization for services rendered. These services must relate directly to the primary purpose for which the organization received its tax-exempt status.

Ruling Year: The year that the IRS granted an organization 501(c)(3) status.

Tax-Exempt Bond Liabilities: The amount of tax-exempt bonds (or other obligations) issued by an organization on behalf of a state or local governmental unit, or by a state or local governmental unit on behalf of an organization, and for which an organization has a direct or indirect liability. Tax-exempt bonds include state or local bonds and any obligations, including direct borrowing from a lender, or certificates of participation.

Total Assets: All income received and property owned by the organization.

Total Liabilities: All expenditures paid and debts owed by the organization.