More changes for Nonprofit Financial Statements

Just when everyone got comfortable with nonprofit financial statements, and conditional and unconditional promises to give (instead of pledges) it appears as though there may be more changes ahead.  Granted, the new accounting rules proposed by the Financial Accounting Standards Board is more technical than most development professionals delve into on a regular basis, these promulgated changes could have an impact on fundraisers.  The proposed changes push the concept of donor restricted assets beyond the balance sheet and much further into the organizations’ Statement of Activities (aka the Income Statement).  If nothing else, the development office should reach out to the organization’s CFO or controller to review the impact of these proposed changes.

Don’t get caught off guard by these proposed NFP reporting standards