Nonprofit Accounting Basics

Accounting and Bookkeeping

Nonprofit Omission Errors

A study performed by Jeffrey J.

PATH Act Makes Permanent Several Popular Provisions which Promote Charitable Giving

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

Planning a Fundraising Event? The Devil is in the Details!

As if planning for a fundraising event, such as a silent auction or an annual dinner, wasn’t already one of the busiest times on the calendar for a charity organization, there is the required recor

Pledges Receivable: Explaining the Basics to Your Development Department

Pledges receivable can be a point of conflict between the accounting department and the development or fundraising team.

Prepaid Expenses

Raffles -- The Right Way

Raffles are gaining popularity for nonprofit fundraising. Often combined with a gala or other big event, raffles are accessible and fun.

Revenue Recognition

If you determine that your government grants are contributions, then you should follow the guidance in FASB116.

Revenue Recognition Overhaul Applies to Nonprofits, Too

New accounting standards issued by the Financial Accounting Standards Board (FASB) in May 2014 have completely rewritten the rules for

Revenue Recognition Standard: Implementation Considerations and Disclosure Requirements

On May 28, 2014, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) issued substantially converged final standards on revenue recognition.

Sample Amortization Schedule

Please find below a a sample amortization schedule.

Sample Journal Entries for Government Grants

The following are the entries necessary for cost-reimbursable government grant (assuming the grant is determined to be an exchange transaction):

SOP 98-2 Excerpts

Attachment I - SOP 98-2 - excerpts

Split-Interest Agreements

What are "split-interest" ("planned giving") agreements?

Split-interest agreements, also known as planned giving, are contributions that assign the legal rights to certain assets to an NFP

The OMB Rule on Indirect Costs: What You Need to Know

The Office of Management and Budget’s Uniform Guidance (the Omni Circular) has brought sweeping changes for nonprofits that receive federal funding.

Types of Grants

Unconditional Promises to Give

What is an unconditional promise to give (pledge)?

FASB116 stipulates that "unconditional promises to give" are to be recorded at the time the NFP receives notification of the promise.

Website Development Costs

An area of confusion I see frequently on audits is the treatment of website development costs.

Your Website: Asset or Expense?

Websites are fast becoming the major means of communication between nonprofit organizations and their members, beneficiaries, contributors, and other stakeholders.

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