2. THE AKSHAYA PATRA FOUNDATION (USA) Notes to Financial
Statements December31, 2016 11
Note 2 –
Summary of Significant
Accounting Policies (Continued) Income Tax Status The Organization is exempt from federalincome tax
under Section 501(c)(3) of the Internal Revenue Code except on net income derived from unrelated
business activities. In addition, the Organization qualifies for the charitable contribution deduction under
Section 170(b)(1) (a) and has been classified as an organization that is not a private foundation under
Section 509(a)(1). The Organization is also exempt from Massachusetts state taxes.
Use of Estimates and Assumptions
The presentationof financialstatementsinconformitywithaccountingprinciplesgenerallyacceptedin
the UnitedStatesof Americarequiresthe Organization’smanagementtomake estimatesand
assumptions.These affectthe reportedamountsof assetsandliabilities,anddisclosuresof contingent
assetsand liabilitiesatthe date of the financial statements,andthe reportedamountsof revenuesand
expensesduringthe reportingperiod.Actual resultscoulddifferfromthose estimatesandassumptions.
Contributions
Contributionsare recognizedasrevenue whentheyare receivedorunconditionallypledged.The
Organizationreportsgiftsof cashand otherassetsas restrictedsupportif theyare receivedwithdonor
stipulationsthatlimitthe use of the donatedassets. Whenadonorrestrictionexpires,temporarily
restrictedassetsare reclassifiedtounrestrictednetassets.
Restricted and Unrestricted Revenue and Support
Contributionsreceivedare recordedasunrestricted,temporarilyrestricted,orpermanentlyrestricted
support,dependingonthe existence and/ornature of anydonorrestrictions.Supportthatisrestricted
by the donoris reportedasan increase inunrestrictednetassetsif the restrictionexpiresinthe
reportingperiodinwhichthe supportisrecognized.All otherdonor-restrictedsupportisreportedasan
increase intemporarilyorpermanentlyrestrictednetassets,dependingonthe nature of the restriction.
Whena restrictionexpires(thatis,whenastipulatedtimerestrictionendsorpurpose restrictionis
satisfied),temporarilyrestrictednetassetsare reclassifiedtounrestrictednetassetsandreportedinthe
Statementof Activitiesasnetassetsreleasedfromrestrictions.However,if arestrictionisfulfilledinthe
same time periodin whichthe contributionisreceived,the Organizationreportsthatsupportas
unrestricted.
3. Pledges Receivable
Pledgesreceivablerepresentamountswhichare due fromdonorswhichare classifiedascurrentif they
are scheduledforpaymentwithinone year,andnon-currentwhenthe expectedpaymentdate exceeds
one year.Promisestogive withexpectedpaymentdatesthatextendbeyondone yearare discountedto
theirpresentvalue assummarizedonthe Note 9.Managementbelievesthatall pledgesreceivableare
collectible,andtherefore,noallowance fordoubtful pledgeshasbeenestablished.If pledgesare
determinedtobe uncollectibleinsubsequentperiods,theywill be chargedtoactivitiesatthattime.
Significant Concentrations of Risk
Financial instrumentsthatpotentiallysubjectthe Organizationtoconcentrationof creditriskconsist
primarilyof cash,cash equivalents,investments,andcontributionsreceivable.The Organization
maintainsitscash,cash equivalents,andinvestmentswithhigh-creditqualityfinancialinstitutions.
