Health and Welfare Entities
Voluntary Health and Welfare Organizations (VHWO) performs voluntary services for various segments of society and is tax exempt (organized for the benefit of the public), supported by the public, and operated on a not-for-profit basis. Most voluntary health and welfare entities concentrate their efforts and expend their resources in an effort to solve health and welfare problems of our society and, in many cases, those of specific individuals. Health and welfare organizations derive their revenue primarily from voluntary contributions from the general public and governmental entities and require greater scrutiny in their financial reporting. Many of these organizations provide social services connected with health, welfare, or community service, and operate internationally with affiliates around the world.
How We Serve Health and Welfare Entities
We provide a full range of services listed under Nonprofits. The one area unique to VHWOs is due to current accounting standards, only VHWOs are required to present a statement of functional expenses as a basic financial statement in a matrix format that reports expenses by both function (e.g., program, M&G, fundraising) and their natural classification (e.g., salaries, occupancy, supplies, etc.). This higher standard of reporting for VHWO’s results from their reliance on voluntary contributions from the general public. The information provided in a statement of functional expenses allows a donor to evaluate a charity’s efficiency and effectiveness in utilizing their donations to achieve results.