Economic Interest
Economic Interest
Economic Interest
The CICA Handbook requires the nature and extent of any economic interest in a non-profit organization to be disclosed. (4450.45)
An economic interest exists where another organization’s assets must be used to produce revenue or provide services for the benefit of the reporting organization, for example, where:
- the other organization solicits funds for the reporting organization
- the reporting organization has transferred assets to the other organization to be used for the benefit of the reporting organization, or
- another organization is required to perform services that accomplish the key purposes of the reporting organization
An economic interest would also exist where the reporting organization is responsible for another organization’s liabilities.