Proper nonprofit audit preparation and compliance is important for building donor trust, financial transparency and accountability.
The nonprofit Statement of Activities is one of the main financial statements of a nonprofit organization.
What is a nonprofit statement of financial position report and how can it determine if a nonprofit is healthy financially?
As a nonprofit organization you are required by the IRS to file an annual financial information return called the IRS Form 990.
The difference between nonprofit earned revenue and contributions is quite simple. Earned revenue is money that a charity earns for providing goods or services.
Nonprofit fund accounting is based on funds and programs, but, what is the difference between a fund and a program?
One of the key differences between for profit and nonprofit accounting is the presentation of net assets on the balance sheet. In the nonprofit world, it is not called a balance sheet. It is called a Statement of Financial Position.
The new FASB rules have re-defined the classification of funds known as net assets, altering the way nonprofits present their financial statements.
It all comes down to the measurement of success. Regardless of a for profit’s mission statement, the number one goal is to make money. But, to a nonprofit organization, the answer is not so simple.
While you might think that all accounting is the same – debits and credits – there are vast differences between Nonprofit Accounting and Commercial For-Profit Accounting.