Nonprofit organizations run on notoriously lean budgets. Every dollar spent on administrative needs is a dollar not spent on organizational mission.
With this frugality in mind, it’s no wonder that nonprofit organizations often “go without,” encouraging everyone to work a little harder and smarter. But this attitude can overtax staff and create inefficiencies. Moreover, nonprofit organizations often reach a point when a lack of knowledge, expertise, or time can result in poor financial decisions or outcomes. (more…)
In 2016, the Financial Accounting Standards Board (FASB) issued new rules for nonprofit organizations, “Presentation of Financial Statements for Not-for-Profit Entities.” These new rules, effective for organizations with calendar year 2018 and fiscal year 2019 year ends, were the first significant changes for nonprofit financial statements in 25 years.
In June 2018, the FASB released a clarification to the 2016 rules regarding contributions of cash and other assets received by nonprofit organizations. With this clarification in place, nonprofit organizations have more guidance about the key changes required for the presentation of their financial statements. (more…)
