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See FSP 6 for information on the classification of a number of different common transactions in cash flow statements.
Additionally, Figure NP 4-1 summarizes the classifications of certain cash inflows and outflows that are unique to NFPs and other areas that frequently generate questions. Also see ASC 958-205-55 for an illustration of the cash flow classification of a number of NFP-specific transactions.
Figure NP 4-1
Classification of common NFP transactions
Activity
Inflow
Outflow
Operating
  • Cash contributions without donor restrictions
  • Cash contributions with donor restrictions other than long-term purposes
  • Proceeds collected on pledges that are not restricted for long-term purposes
  • Proceeds from sales and maturities of certain securities classified as trading (healthcare organizations (HCOs). See FSP 6.7.1.3
  • Contributions or grants to other NFPs
  • Purchases of certain securities classified as trading (HCOs). See FSP 6.7.1.3
Investing
  • Proceeds from sale of works of art, historical treasures, and similar assets (whether capitalized or not)
  • Proceeds from sales and maturities of certain securities classified as trading (HCOs). See FSP 6.7.1.3
  • Proceeds from sales and maturities of other-than-trading securities (HCOs)
  • Purchase of works of art, historical treasures, and similar assets (whether capitalized or not)
  • Purchases of certain securities classified as trading (HCOs). See FSP 6.7.1.3
  • Purchases of securities classified as other-than-trading (HCOs)
  • Cash consideration paid in an acquisition, net of cash acquired. See ASC 958-805-55-69
Financing
  • Receipts from contributions that are restricted for purposes of acquiring, constructing, and improving land, buildings, or equipment or other long-lived assets
  • Receipts from contributions that are restricted for purposes of creating permanent or term endowments
  • Cash received by an NFP trustee in creation of donor-restricted annuity trusts or life income funds
  • Receipts from grants that create revolving student loan funds
  • Interest income restricted for revolving student loan funds
  • Receipts of donor-restricted dividends, interest, or other investment income that must be used to increase permanent or term endowments
  • Receipts of investment income on annuity trusts or life income funds that, by agreement with donors, must be held to make payments to beneficiaries (as opposed to benefiting the NFP's interest)
  • Proceeds collected on pledges restricted to long-term purposes
  • Cash inflows from member purchases of capital shares/stock (clubs)
  • Receipts from equity transfer made by affiliate
  • Refunds to donors of gifts that were restricted for long-term purposes
  • Payments to beneficiaries under donor-restricted annuity trusts or life income funding agreements
  • Refunds of grants that were restricted to creating revolving student loan funds
  • Payment of equity transfer to affiliate
Noncash
  • Donations of works of art, historical treasures, and similar assets, whether capitalized or not
  • Donated buildings or PP&E
  • Certain donated investments (see NP 4.5.1)
  • Donated services utilized in acquisition or construction of a long-lived asset
  • Noncash assets received and liabilities assumed in an acquisition transaction. See ASC 958-805-55-70
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