Nonprofit Accounting Basics

Revenue

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).

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.

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

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.

Nonprofit Omission Errors

Originally Posted: April 6, 2016

A study performed by Jeffrey J.

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

Originally Posted: March 29, 2016

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

Originally Posted: March 10, 2015

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

Raffles -- The Right Way

Originally Posted: August 27, 2012

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

Revenue Recognition Overhaul Applies to Nonprofits, Too

Originally Posted: November 5, 2016

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

Originally Posted: March 22, 2016

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

Split-Interest Agreements

Originally Posted: June 6, 2009

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

Unconditional Promises to Give

Originally Posted: June 6, 2009

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.

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