Introduction to Accounting for Not-for-Profit Organizations

Accounting and disclosure requirements for not-for-profit organizations differ significantly from those of for-profit organizations. Not-for-profit organizations do not utilize equity ownership interests, receive a significant portion of their revenues from donors, and have different motives for existence than their for-profit counterparts.

This course analyzes the basics of Not-for-Profit Accounting as established by Generally Accepted Accounting Principles (GAAP) by reviewing the following four Financial Accounting Standards Board (FASB) standards:

• FASB No. 116 (Accounting for Contributions received and made)
• FASB No. 117 (Financial Statements of Not-for-Profit Organizations)
• FASB No. 124 (Accounting for Certain Investments Held by Not-for-Profit Organizations)
• FASB No. 157 (Fair Value Measurements)

The course will explore how the following categories distinguish Not-for-Profit Financial Statements:

• Contributions received and made
• Restricted, Temporarily Restricted and Unrestricted Funds
• Certain investments held by Not-for-Profit organizations
• Fair Value of assets