Statement of Functional Expenses

Statement of Functional Expenses

VOLUNTARY HEALTH AND WELFARE ENTITY

GAAP defines a voluntary health and welfare entity as an NFP that is formed for the purpose of performing voluntary services for various segments of society, that is tax exempt (organized for the benefit of the public) and supported by the public.

Most voluntary health and welfare entities concentrate their efforts and expend their resources in an attempt to solve health and welfare problems of our society and, in many cases, those of specific individuals. As a group, voluntary health and welfare entities include those NFPs that derive their revenue primarily from voluntary contributions from the general public to be used for general or specific purposes connected with health, welfare or community services. For purposes of this definition, the general public excludes governmental entities when determining whether an NFP is a voluntary health and welfare entity.

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