Nonprofit Accounting Basics

Accounting and Bookkeeping

Accounting for Capital Leases

Originally Posted: June 12, 2009

Leases are a common method for organizations to obtain capital assets. Virtually any asset that can be purchased can also be leased, including vehicles, furniture and office equipment.

Accounting for Fundraising Expenses

Originally Posted: June 3, 2009

Generally accepted accounting principles (GAAP), in Statement of Financial Accounting Standards No.

Accounting for Government Grants: Sample Journal Entries

Originally Posted: June 6, 2009

Following are some examples of journal entries for accounting for government grants.

Proper Accounting for Contributions:

Accounting for Special Events

Originally Posted: May 21, 2010

Many special events, such as dinners, galas, auctions, and walk-a-thons, are organized to raise contributions to support the organization’s activities.

Agency Transactions

Originally Posted: June 6, 2009

What are agency transactions?

Agency transactions occur when one NFP (the agent) raises contributions for another NFP (the recipient).

Allowable Costs

Originally Posted: June 6, 2009

The specific items that can be charged to, and therefore reimbursed from, any grant are based on the specifics of each grant agreement.

Be Careful What You Ask For

Originally Posted: April 8, 2015

This article illustrates how accounting decisions or judgments can affect taxes - on an organization or on its donors, and vice versa.

Behind the Numbers: Development and accounting information disagrees? Here is the solution!

Originally Posted: June 12, 2012

Has this ever happened to you?

Budget for Government Grants

Originally Posted: June 6, 2009

When you receive a grant from a governmental agency, it will typically include a program budget.

Charity Auctions: Reporting and Tax Rules

Originally Posted: April 28, 2015

While neither charity auctions nor the various rules governing them are new, we receive numerous questions about them and observe many examples of inadequate auction procedures by both large and sm

Corporate Sponsorships: Do Them Right and Avoid Tax

Originally Posted: June 4, 2012

Exempt organizations, both large and small, are relying more and more on a variety of corporate sponsorships to provide much-needed support for events and programs.

Deferred Revenue

Originally Posted: February 13, 2018

Do Your Part for Donors: IRS Substantiation Rules Apply to Contributors

Originally Posted: June 2, 2015

Tax-filing season may have just ended but it’s always a good time to make sure that your organization is following the IRS donation “substantiation rules” so that your benefactors will have the pro

Donor Imposed Restrictions

Originally Posted: June 6, 2009

What are "donor-imposed" restrictions?

FASB116 focuses on the concept of restricted revenue.

Exchange Transactions

Originally Posted: June 6, 2009

Factors that may indicate an exchange transaction:

Often it is difficult to distinguish between a contribution and an exchange transaction, the following factors are indicative of an exchan

FAS 116

Originally Posted: December 8, 2009

What is FASB 116?

Statement of Financial Account Standards 116 (FASB116) is the primary guidance relating to the recording of contribution revenue by not-for-profit organizations (NFPs).

Get Smart About Art Donations

Originally Posted: December 27, 2016

Non-cash Contributions

Government Grants

Originally Posted: June 6, 2009

Government grants are a common method for non-for-profit (NFP) organizations to obtain funding.

How to Run a Successful Capital Campaign

Originally Posted: July 16, 2012

To launch a capital campaign is a major decision for any nonprofit. Capital campaigns are not for all organizations. Those who decide to start one must ensure:

Improving Communication Between the Accounting and Development Department

Originally Posted: April 9, 2013

In this article, we will take a closer look at ways to improve communication specifically between the accounting and development departments.

IRS Proposes Implementing a Donee Report Form

Originally Posted: November 17, 2015

The Omnibus Budget Reconciliation Act of 1993 (or “OBRA93”) contained two major provisions affecting charities and their donors by introducing the "substantiation" and "disclosure" requirements.

Joint Cost Allocation

Originally Posted: June 3, 2009

Joint Costs of Multi-purpose Activities. This is the subject of AICPA Statement of Position No. 98-2.

Nonprofit Omission Errors

Originally Posted: April 6, 2016

A study performed by Jeffrey J.

PATH Act Makes Permanent Several Popular Provisions which Promote Charitable Giving

Originally Posted: March 2, 2016

On December 18, 2015 the President signed the PATH Act (Protecting Americans from Tax Hikes Act).

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