FASB Wants Nonprofit Organizations to Reveal More Detail About Expenses
Author: Katherine E. David.
Source: Volume 13, Number 02, January/February 2014 , pp.1-4(4)
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Abstract:
The Financial Accounting Standards Board (FASB) has tentatively decided to strengthen the standards by which nonprofit organizations report their expenses. This article examines the proposed changes, which were made in response to donors’ expressed interest in knowing how the money they contribute to nonprofit organizations is used. The new rules are expected to make organizations’ financial statements more transparent and may affect how family foundations—particularly those that are subject to outside audits—present their financial information. More important, if finalized, the new rules should give family foundations a fuller understanding about how the nonprofit organizations they fund use their money, increasing foundations’ ability to make the most efficient use of their grant funds.Keywords: Financial Accounting Standard No. 117; Functional Reporting; Natural Classification Reporting
Affiliations:
1: Strasburger & Price, LLP.