Dictionary of Accounting Terms: voluntary health and welfare organization
voluntary health and welfare organization
entity providing health-related services. It is a not-for-profit organization that follows accrual accounting. The fund groups of a voluntary health and welfare organization include current funds, plant funds, and endowment funds.Current fundsare used for operations; they are classified as unrestricted or restricted. The restriction may relate to a specific operating objective by reason of gift, grant, etc.Plant fundsinclude land, buildings and equipment, and related debt, along with assets to be used for future acquisitions and replacements.Endowment fundsare used to account for bequests that require principal to be maintained intact.
