An advance health care directive, also known as living will, personal directive, is a legal document in which a person specifies what actions should be taken for their health if they are no longer able to make decisions for themselves because of illness or incapacity.
An independent examination of an organization’s records and accounts to make sure that they show a fair, accurate and legal reflection of the financial position of the company at the accounting date. Audits can be either internal or external.
A summary of an organizations assets (what it owns), liabilities (debts it owes) and equity (net worth) at a point in time. Assets are listed on the left-hand side liabilities and equities are listed on the right-hand side.
A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment.
The CPA is a license to provide accounting services directly to the public. The CPA is awarded by each of the 50 states for practice in that state additionally 49 of 50 states have a mobility agreement.
A score of a person’s ability to repay debt such as loans and credit card bills. The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies — Equifax, Experian, and TransUnion — to provide you with a free copy of your credit report, at your request, once every 12 months.
A tax on the transfer of the estate of a deceased person. The tax applies to property that is transferred via a will or according to state laws of intestacy. In addition to the federal estate tax, many states have enacted similar taxes. These taxes may be termed an “inheritance tax.”
The power of a state to acquire title to property for which there is no owner. The most common reason that an escheat takes place is that an individual dies intestate, meaning without a valid will indicating who is to inherit his or her property, and without relatives who are legally entitled to inherit in the absence of a will.
Estate planning is the process of anticipating and arranging, during a person's life, for the disposal of their estate. Estate planning can be used to eliminate uncertainties over the administration of a probate and to maximize the value of the estate by reducing taxes and other expenses.
The involuntary fee levied on individuals' income by the federal government. All wages are subject to Federal Income Tax, however ministers do not have to pay Federal Income Tax on properly authorized and validated housing allowance.
Financial statements for businesses usually include income statements, balance sheets, statements of retained earnings and cash flows. It is standard practice for businesses to present financial statements that adhere to generally accepted accounting principles (GAAP) to maintain continuity of information and presentation across international borders.
A cost that does not change with an increase or decrease in the amount of goods or services produced by a company or the activity of an organization. Fixed costs are expenses that have to be paid by an organization, independent of any activity or change in income.
Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower, who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan.
An accounting system emphasizing accountability rather than profitability, used by non-profit organizations. In this system, a fund is a self-balancing set of accounts, segregated for specific purposes.
A designated portion of a pastor’s salary (officially designated in advance of payment) for the amount actually used to provide or rent a home not to exceed the fair market rental value of the home (including furnishings, utilities, garage, etc.).
To allocate money (or sometimes another resource, such as time) in the expectation of some benefit in the future. In finance, the expected future benefit from investment is a return that may consist of capital gain and/or investment income, including dividends, interest, rental income etc.
Includes transactions in equity securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures. Portfolio investments are passive investments, as they do not entail active management or control of the issuing company.
A type of shared ownership of property, where each owner has an undivided interest in the property. This type of ownership creates a right of survivorship, which means that when one owner dies, the other owners absorb the deceased owner's interest.
The money of individual investors. The combined capital invested by a professional fund manager, in some cases being applied across a range of asset classes such as stocks, bonds, property, or infrastructure assets.
A category of employees entitled to overtime pay and minimum wage as described in the Fair Labor Standards Act (FLSA). Non-exempt employees must be paid for each hour that they work and 1.5x their hourly wage for any hours worked over 40. Employees who earn less than $455/week and those who do not use personal discretion and independent judgment at least 50% of the time are considered non-exempt.
An organization that has been formed by a group of people in order "to pursue a common not-for-profit goal", that is, to pursue the stated goal expressly without the intention of distributing excess revenue (i.e. profit) to members or leaders.
One of 29 types of nonprofit organizations which are exempt from federal income taxes. Each local Church of the Nazarene is a part of the Church of the Nazarene Inc. 501(c)3 and documentation is available at the General Secretary’s Office.
The involuntary fee levied on individual property owners by the county or state government. Usually assessed as a percentage of the value of an item. They can fall under county or state taxes, depending on where you live. Not all states tax personal property, however, and what is subject to personal property tax varies widely from state to state.
A written document in which one person (the principal) appoints another person to act as an agent on his or her behalf, thus conferring authority on the agent to perform certain acts or functions on behalf of the principal.
A financial projection based on assumptions. Also, refers to a statement of income and balance sheets that exclude non-recurring items. A financial statement that a company or an organization prepares to consider the effects of a potential activity. A pro forma financial statement can be part of the risk analysis of a situation.
The money that a person or company earns as a percentage of the total value of his/her/its assets that are invested. Because it is easy to calculate the return on investment, it is a relatively popular measure of the profitability on an investment and can help in making investment decisions.
“Social security” tax paid fully by the wage earner. The IRS allows ministers to either have the local church withhold FICA taxes and treat them as a regular employee or to file as a self-employed person and pay the full SECA tax. This tax is figured on both wages and housing allowance.
The paper that tells a defendant that he or she is being sued and asserts the power of the court to hear and determine the case. A form of legal process that commands the defendant to appear before the court on a specific day and to answer the complaint made by the plaintiff.
Any type of property that can generally be moved (i.e., it is not attached to real property or land), touched or felt. These generally include items such as furniture, clothing, jewelry, art, writings, or household goods.
A legal and fiduciary relationship created through explicit instructions in a deceased's will. A testamentary trust goes into effect upon an individual's death and is commonly used when someone wants to leave assets to a beneficiary, but does not want the beneficiary to receive those assets until a specified time. Testamentary trusts are irrevocable.
A document issued by a legal or government official authorizing the police or some other body to make an arrest, search premises, or carry out some other action relating to the administration of justice.
A legal document by which a person expresses his or her wishes as to how his or her property is to be distributed at death, and names one or more persons, the executor, to manage the estate until its final distribution.
A system whereby an employer must pay, or provide insurance to pay, the lost wages and medical expenses of an employee who is injured on the job. Workers' compensation law is governed by statutes in every state. Specific laws vary with each jurisdiction, but key features are consistent. An employee is automatically entitled to receive certain benefits when he/she suffers an occupational disease or accidental personal injury arising out of and in the course of employment.
A legal phrase, describing a situation in which an employee's contract of employment has been terminated by the employer if the termination breaches one or more terms of the contract of employment, or a statute provision in employment law.