Nonprofit Accounting

This essay reviews the accounting standards that are used by nonprofits (NPOs) to meet their financial reporting requirements. There are two bodies that issue standards for nonprofits: The Financial Accounting Standards Board (FASB) and the Office of Budget and Management (OMB). The American Institute of Certified Public Accountants (AICPA) also has oversight in auditing of NPOs. Nonprofits are similar to the government in that their mission is to provide services for the public good. Nonprofit organizations are not in business to make money, but rather to provide services with revenue from private donations or federal awards. Because nonprofits receive money through donations, gifts or grants, they are highly accountable to their constituents to show value from their programs and services. Nonprofits vary in size and may or may not have paid staff or access to professional managers or financial advisors. Because of the nature of revenue streams for nonprofits (grants, gifts and memberships) special accounting procedures and financial statements are required; especially if the NPO receives federal money. This essay describes the general requirements for NPO accounting and financial reporting as well as the unique requirements for NPO financial statements. Future trends related to the funding, growth and management of NPOs are reviewed.

NPOs are not in business to make a profit; they are funded through donations or government awards, and they are in existence to provide services for the common good. NPO stakeholders (particularly donors and volunteers) want certainty that resources are being used wisely to provide services to constituents. Operational costs must be reasonable and fiscal and ethical accountability are also an expectation. Donors and awarding agencies expect NPOs to spend funds and not save them for the future. Annual expenditures for NPOs should end up very close to revenues (Elmerraji, 2007).

NPOs have been existence in the US, in one form or another, for more than 200 years and they continue to serve as important social service providers within our economy today.

Growth of Organizations for the Public Good

There has always been a strong feeling in the United States that there is a private responsibility to support the public good. The first charitable entities in the US were charitable trusts and community trusts. The first foundations were formed in the late 19th century. By WWI, public-private partnerships had been formed which supported public endeavors through private support or fundraising. After WWI, New Deal programs and initiatives such as Social Security and unemployment insurance were being created to fill the growing social need. In the 1930s, taxes were increased for individuals and business and this proved an incentive for many wealthy individuals and businesses to give money to organizations. With the start of WWII, there was a drop in government support for social welfare programs and nonprofits began to fill the void.

The two decades after WWII saw a continued increase in government funding to nonprofits. The so-called "Great Society" programs came about in the 1960s including Medicare, Medicaid and training and employment programs. In the 1970s, the US government began to shift grant money toward nonprofits as a means to support an even greater number of social programs. By the 1980s, the US government was actively encouraging the growth of nonprofits as government support shifted from education and income assistance to healthcare, housing and pension programs. Nonprofits began to primarily focus on the provision of social services to the middle class while for-profit organizations also began to provide services to the same population. There has been a steady increase in demand for social welfare programs since the 1980s when government support increased. The increased demand for services increased competition between nonprofit and for-profit organizations and nonprofits began to look to private funding sources to remain competitive (Bourgeois, 2003).

The Future of Nonprofit Organizations

From 1997 to 2007, there was an 88% increase in the number of foundations that were formed (Husock, 2007, p. 20). Philanthropy (money available) was expected to reach $6 trillion by 2050, with much of the funding coming from baby boomer wealth. Wealthy retirees pouring money into philanthropic endeavors had been largely responsible for the "augmentation of government services" by nonprofits and helped to increase the overall number of nonprofits by 67% from 1999-2007 (Husock, 2007). In 2007, private charitable giving reached an all-time high. The recession that began that year, however, caused a dramatic pull back of both individual and corporate philanthropic gifts. Private giving went from $344.5-billion in 2007 to $293.8-billion in 2009, with modest gains between 2010 and 2012. Living donors saw a decrease of 11% from the 2007 high. Retirees conserved their savings, which had been hit hard by the stock market crash and string of corporate failures, and professionals expressed job insecurities and lower earnings. In 2013, charitable giving was not expected to rise to its pre-recession level until 2018 (GivingUSA, 2013).

Financial & Stakeholder Management

The need for financial accountability and reporting is ever increasing for nonprofits as the sources of funding increase. Nonprofits must be accountable for financial and management reporting of government grants and contracts, as well as to the public for in-kind donations and gifts. Nonprofit entities often have numerous stakeholders that carry varied expectations regarding the mission and vision of the organization.

Nonprofit stakeholders can include any of the following groups (Balser & McClusky, 2005):

• Funders / Donors
• Government Officials
• Volunteers

• Clients

• Executive Director/ Staff
• Board of Directors

The management of stakeholder relationships is critical to organizational effectiveness in nonprofits where balancing "social" expectations can be as critical to the health and longevity of the entity as is financial management. This essay discusses specific financial reporting requirements that need to be met for stakeholders (namely governmental and accounting stakeholders). The federal requirements for the managing, administering and financial reporting of awards will be outlined. The future role of NPOs in providing social services, the need for internal audits and professional management and oversight is discussed.

Applications

NPO Financial Reporting

NPO financial statements are easily interpreted by individuals who are familiar with for-profit financial statements. There are, however, a few significant differences between nonprofit and for-profit accounting. Regardless of the size of an NPO, it is advisable to have access to a financial advisor who is familiar with NPO accounting principles; advisors may be volunteers, staff, financial advisor or accountant.

It is imperative to keep in mind that economic data for nonprofit organizations is interpreted differently from financial Statements that are for profit. According to "What a Difference Nonprofits Make: A Guide to Accounting Procedures," 1990:

"Meaningful evaluations and comparisons of nonprofit performance almost always prove difficult and complex. While the profitability of two businesses can easily be calculated, it is much harder to compare the effectiveness of two counseling centers to see which is doing a better job of helping the mentally ill. Without the standard of profitability, it is also difficult to compare the job performance of nonprofit staff and managers" (Alliance for Nonprofit Management, 2004).

Fund Accounting

NPOs often use "fund accounting" procedures to group money (and sometimes the associated financial data) into individual funds. For example, an NPO may have an established general fund or one or more special funds. Money in a general fund may be used for maintenance, day-to-day operations, wages and building maintenance. A special fund is set up with restrictions and associated internal controls, and is designated for separate activities (ex: an acquisition fund). Fund accounting provides a way for organizations to have a clear idea of what resources are available for specific tasks or programs. In some cases, funds must be treated, legally, as separate accounting entities and may be required by law to have separate financial statements for each fund. Fund accounting is used in both governmental and NPO accounting and as such, it is critical to understand when looking at an NPO financial statement.

Financial Accounting Standards Board (FASB) Nonprofit Requirements

FASB-116

The FASB has issued two sets of guidelines for NPOs with regard to accounting standards. FASB-116 outlines how nonprofit organizations should handle contributions made to an organization. Contributions to an NPO may include monetary gifts, services and historical artifacts. Due to the nature and diversity of what is defined as a "contribution," FASB-116 provides guidance for reporting contributions.

FASB 116 -- Accounting for Contributions Received and Contributions Made provides the following guidelines as they apply to NPOs:

• Unconditional pledges must be recorded in accounting records. Contributions must be recognized as revenue in the period that they are received and at fair market value.
• NPOs must account for contributions of most goods such as property and equipment. Exemptions can be made for gifts of art and items in museum collections as outlined in the guidelines.
• NPOs must distinguish between the three types of assets that are outlined in FASB-117 below (unrestricted, temporarily restricted and permanently restricted assets). NPOs must also record and track all donor imposed restrictions.
• Volunteer time must be recorded if it results in the making or embellishment of non-economic advantages (ex: renovation of a building, special professional skills or craftsmen) (FASB, 2003).

FASB -117

FASB -117 outlines the requirements for creating a general external financial statement for a nonprofit organization. The guidelines have been created to promote consistency and comparability for NPO financial statements. By requiring NPOs to create financial statements using FASB-117 guidelines, NPOs may also increase the relevancy and understandability of their financial reporting mechanisms (Financial Standards Accounting Board [FASB], 2003).

Nonprofits don't publish Comprehensive Annual Financial Reports CAFRs (governments do). Instead, nonprofit reports will typically just be called a "Report of Consolidated Financial Statements." In any event, the statements for governmental and nonprofit companies are alike in format and fashion. The chart below outlines the three main nonprofit financial statements (right) and the equivalent for for-profit businesses (Elmeraji, 2007).

• The Statement of Financial Position (balance sheet) is a snapshot of the health of the NPO on a given date. Like a typical balance sheet, it records the organization's assets and liabilities and net assets (assets-liabilities). The NPO Statement of Financial Position also requires that assets be categorized as; unrestricted, temporarily restricted, or permanently restricted assets.
• The Statement of Activities (income statement) provides a summary of financial activity over time. This statement shows how an organization's net assets (unrestricted, temporarily restricted, and permanently restricted assets) have changed or changed in relation to each other.
• The Statement of Cash Flow documents information about cash receipts and disbursements -- it shows an organization's "cash position" (Elmeraji, 2007).

"The three financial statements are used together to project and analyze the fiscal health of an organization. Many states and funding organizations require nonprofits to provide these financial statements to address questions about their financial activities. The financial statements may also be used to compile a formal audited statement, prepared by a certified public accountant, that complies with FASB standards" (Bourgeois, 2003, p. 9).

Office of Budget & Management Guidelines for Nonprofits

The Office of Budget and Management (OMB) has issued three sets of standard guidelines (circulars) for use by NPOs in the administration and reporting of certain activities. The three areas outlined by OMB circulars include:

• Circular A-110- Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations. This document provides comprehensive guidance for the administration of federal grants by NPOs.
• OMB Circular A-122 is titled Cost Principals for Nonprofit Organizations. This document deals with how to designate and report the different types of costs associated with the administration of federal awards.
• Circular A-133 is titled: Audits of States, Local Government and Nonprofit Organizations. This document outlines the requirements of awarding agencies, award recipients and auditors.

OMB A-110

OMB Circular A-110 is titled Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit Organizations. "This Circular sets forth standards for obtaining consistency and uniformity among Federal agencies in the administration of grants to and agreements with institutions of higher education, hospitals, and other non-profit organizations" (OMB, 1999, 1.). Grant recipients and sub-recipients are obligated to follow the provisions of this document. Primary grant recipients often hire subcontractors to fulfill some part of the service agreement -- the money that is used to fund the subcontractor is called "pass through" money. None-the-less, subcontractors must also use A-133 to administer and track their portion of the award-funded project. Circular A-110 is a very detailed document that outlines all the guidelines for recipients to administer awards. The guidelines spell out how to do "business" with federal awarding agencies. The major requirements of A-110 are:

• Pre-award policies
• Post-award requirements
• Financial program management
• Property Standards
• Procurement Standards
• Reports and Records
• Termination and Enforcement
• After-award requirements

The detailed report can be found at: http://www.whitehouse.gov/omb/circulars/a110/a110.html

OMB A-122

OMB Circular A-122 is titled Cost Principals for Non-profit Organizations. This circular applies to nonprofits-excluding colleges and universities. Circular A-122 helps federal agencies determine the costs of work done by nonprofits. The costs as defined by the circular apply to pricing, administration and settlements of contracts. The same guidelines apply to subcontractors or sub-grants that may be under the original grant award.

According to Circular A-122, the agency (federal) that is responsible for program administration will implement the provisions outlined in the circular. This circular outlines basic guidelines for grant recipients in determining what direct and indirect costs can be paid from federal money. Organizations receiving the grants are required to designate a liaison or agency representative who can work with federal agencies in determining allowable costs. Circular A-122 provides very detailed guidelines for grant recipients to help what costs may be paid out of federal grant money. The provision for determining "indirect costs" is the most complicated section of the circular and leaves the most to interpretation. Circular A-122 outlines the following:

• Prior approval must be secured in advance before costs of questionable nature can be paid out of grant.
• The total cost of direct and allowable costs.
• Factors affecting allowable costs.
• Reasonable costs.
• Direct costs.
• Indirect Costs.

The detailed report can be found at: http://www.whitehouse.gov/omb/circulars/a122/a122%5F2004.html

OMB A-133

The Office of Budget and Management's (OMB) Circular A-133 is titled: Audits of States, Local Government and Nonprofit Organizations. Circular A-133 must be completed by recipients of federal awards (grants) of $500,000 or more. A-133 outlines guidelines and responsibilities for award recipients, auditors and awarding agencies as well as audit report requirements.

Circular A-133 "establishes the standards in order to obtain consistency and uniformity among federal agencies for the audit of states, local governments, and not-for-profit organizations expending federal awards" (AICPA, 2005, "Purpose of this tool").

Award recipient responsibilities under OMB Circular A-133 are to:

• Maintain internal controls- to meet compliance standards.
• Identify all grant programs by Catalog of Federal Domestic Assistance (CFDA) number and title, awarding agency, and year of award.
• Insure that the OMB 133 audit is filed with appropriate federal agency.
• Follow up on all compliance issues- and make appropriate corrective actions.
• Sign off on audit forms (AICPA, 2005, "Requirements and Responsibilities").

Auditor responsibilities under OMB Circular A-133 are to:

• Plan and conduct the audit in accordance with GAAS (generally accepted auditing standards) and GAGAS (generally accepted government auditing standards).
• Determine if the organization-wide and federal award financial statements are presented fairly in accordance with GAAS and GAGAS.
• Complete report and audit of expenditures.
• List all internal controls.
• Monitor recipient's compliance with laws, regulations and agreements (compliance testing).
• Follow up on previous audits (AICPA, 2005, "Requirements and Responsibilities").

The awarding agency responsibilities under OMB Circular A-133 are to:

• Insure that audits are filed on-time and are complete.
• Provide technical assistance to auditors and recipients.
• Issue management decisions on audits within six months of filing date.
• Insure that recipients review audit findings and take corrective Actions (AICPA, 2005, "Requirements and Responsibilities").

The last requirement in filing Circular A-133 is to file an auditor's report which requires that auditor:

• Ensure financial statements and expenditures are presented in accordance with generally accepted accounting principals.
• Outline the status of award recipient's internal controls.
• State that the recipient complied with all laws.
• List all programs that were audited.
• Make a statement about the level of risk of the "recipient" in administering the federal award (AICPA, 2005, "Requirements and Responsibilities").

The detailed report can be found at: http://www.whitehouse.gov/omb/circulars/a133/a133.html

Issues

Public Trust of Nonprofit-Branding

Nonprofit scholars and managers generally recognize that "nonprofits need the public's trust for legitimacy, for effectiveness, and for non-financial as well as financial support" (Bryce, 2007, p. 112). Nonprofits have been spared the mud-raking that many for-profits corporations have suffered due to high profile corporate accounting scandals, but nonprofits must be prepared for greater public scrutiny in the future.

The fallout of financial mismanagement is not only a risk in the for-profit world, but now is also a concern for nonprofits. While for-profit businesses have typically been held to higher "accountability" standards by investors and corporate boards, nonprofits are now realizing that they must raise the bar in accounting for their assets. Maintaining and documenting sound financial accounting principles is one of the best ways for NPOs to maintain public confidence. The social contract implies that money will be used for public good. The "reciprocity of expectations" is that "we" as donors and taxpayers, expect that NPOs will have the resources, manpower and information to use our money better than we could (Bryce, 2007).

Loss of reputation or "brand" can also cause great financial hardship to an organization. Relationship marketing is a term that is typically associated with customers and businesses, but it can also be applied to the relationship between donors and NPOs. There is a social contract between an individual and the NPO that she or he supports. The contract can actually be described as a transaction (nonprofit-public) because of the exchange of money for services.

Other components of the nonprofit-public transactions are (Bryce, 2007):

• Contracting, particularly for charitable services.
• Promising commitment exclusively to a public service mission.
• Soliciting and receiving tax exemption and deductible donations in exchange for performance of the promised mission.
• Employing the organization's social capital for the public's benefit.
• Exercising custody over assets for the promised public purpose.

Revenues & Custody of Assets

The two most important earnings transactions for nonprofits are: Program-related revenues such as government contracts and tuition or hospital fees for individuals (which account for 72 percent of all revenues of 501(c)s, the largest group of nonprofits); and donations or contributions (accounting for another 22 percent) (Bryce, 2007). Governance and financial management are the means by which nonprofits hold and operate in the disbursement of social assets. Custodial trust implies care of assets and sound decision-making around preserving, accumulating and growing assets. Much of NPO decision making is discretionary and therefore is increasingly subject to public scrutiny and governmental oversight. NPOs can gain donor confidence and increase credibility by enlisting professional accountants, or financial experts to help with oversight of their accounting functions.

Oversight by Auditors

NPOs are subject to increasing financial scrutiny and oversight from governmental agencies and the public. An audit by a CPA can be a very valuable exercise in identifying and preventing non-compliance and financial accounting mistakes (un-intentional or fraudulent). Three of the most common deficiencies found by auditors of nonprofits are:

• Insufficient staffing of accounting or finance departments.
• Weak internal communication regarding revenue, grants and contracts.
• Deficient application of internal controls.

Any one of the above mentioned issues can be very costly to an NPO in terms of non-compliance, loss of confidence, and fraudulent activities. Auditors cite the need to maintain low operating costs as one reason that accounting individuals may be performing multiple duties at an NPO. Insufficient staffing of critical financial roles can lead to errors and misapplication of funds. A financial expert on staff or under contract may prove invaluable to reducing risk and providing the needed "check and balance" of accounts. Poor internal communication can lead to non-compliance of regulations, incorrect expenditures of restricted funds, and can even put future grants and funds in jeopardy; particularly if mistakes are made public.

Implementing internal controls in an NPO does not have to be a costly or time-consuming task. While many large NPOs have staff accountants and oversight boards, smaller NPOs can tighten controls with existing staff and a contract accountant. The overall goal is to control the reliability of the organization's financial information. This can be accomplished by conducting regular reviews of budgets and forecasting revenues and expenses. Documenting policies and procedures and making them readily available to staff, along with improved internal communications, is another simple way to avert potential compliance and financial reporting problems before they are identified in an audit.

Conclusion

The FASB and OMB provide numerous written guidelines to help NPOs administer federal grants and complete required reporting. General FASB guidelines in completing financial statements benefit all NPOs-even small organizations that don't typically administer federal awards. While the guidelines are specific and comprehensive, they are also complex and time consuming to complete for many NPOs with limited staff.

Successful compliance in the administration and reporting of federal awards is only part of the task for NPOs. Successful documentation, administration and reporting of outcomes to federal agencies don't necessarily indicate overall success or acceptable performance of an NPO in meeting its program objectives. It can be added that federal administration of social programs is difficult to assess from a success standpoint as well. In many cases, money is spent, but overall performance objectives are difficult to quantify. "Would service organizations that relied on private donations-whether from individuals or foundations or both-prove more accountable for their performance than their public or publicly funded counterparts?" (Husock, 2007, p. 20).

It has been documented that nonprofit organizations were very successful in the administration and oversight of social programs prior to the US government becoming involved with funding. Individual citizens contributed largely to community support and social welfare programs before widespread support by the federal government became the norm. Futurists believe that social entrepreneurship will continue to expand as capable individuals retire from for-profit ventures and bring large amounts of personal capital to NPOs.

George Overholser of the National Nonprofit Financing Fund has observed, [that] "generally accepted accounting procedures for nonprofits do not distinguish between an investment meant to help an organization develop a new program and a grant meant to support an existing, effective program. In contrast, in the private for-profit sector, private venture capital and equity investments are clearly distinguished from revenue realized through the sale of a successful product" (Husock, 2007, p. 22).

Perhaps the nonprofit of the future will operate more like a forprofit entity in managing its assets and finances. Overholser continues by suggesting "a quasi-stock market in which so-called venture philanthropists might put their funds at risk to support a social entrepreneur's new idea and, if the idea proves successful, might be reimbursed-with interest-by a group of philanthropists less interested in taking risks than in supporting a successful program and helping it expand. Such a philanthropic "market" would require refined measures of effectiveness, as judged not by service providers themselves but by neutral outsiders-the equivalent of bond rating agencies, which examine financial sustainability, or Underwriters Laboratories, which vouch for the safety of products" (Husock, 2007, p. 22).

Robert Steel, Deputy Treasury Secretary and a former vice chairman of Goldman Sachs, has developed a list of the attributes of a nonprofit he would judge ready for investors. A nonprofit must:

• Demonstrate that it has a clear purpose ("mission") and a succinct approach ("business model") to fulfill it.
• Show both good management and good governance (e.g., an active board).
• Provide measurements showing its work leads to good outcomes.
• Demonstrate what he calls "interest and enthusiasm for reporting regularly" on its progress.

These are similar, in Steel's view, to the attributes that an investment bank looks for in its "due diligence" for a private, for-profit firm (Husock, 2007, p. 22). Accounting and financial management of NPOs will continue with oversight of the federal government for the foreseeable future. However, as privately funded NPOs begin to surpass the number that are supported by federal funds, a shift in the ways and means of accounting for NPO assets is likely to change. Accountability by NPOs will remain a priority for constituents that provide funding. Mandatory auditing of NPOs will likely become a requirement for organizations as scope of service and funding increases.

Terms & Concepts

Audit: The analysis of the accounting archives and internal data of a company that helps to form an opinion about the organization's economic position.

The American Institute of Certified Public Accountants (AICPA): The nation-wide, professional organization for all Certified Public Accountants.

Fund Accounting: Government and nonprofit companies are not concerned with acquiring financial status, but they do use a form of accounting system known as "fund accounting." Fund accounting groups economic data and transfers the information into accounts with like goals and purposes.

GAAS: Generally Accepted Accounting Standards.

GAGAS: Generally Accepted Government Auditing Standards.

FASB 116: "Accounting for contributions received and contributions made. Generally requires the recording of contributions and pledges received at their fair market value at the time of receipt" (Bourgeois, 2003, p. 26).

FASB 117: "Financial statements of not-for-profit organizations. Establishes standardized financial statements for most non-profit organizations" (Bourgeois, 2003, p. 42).

Nonprofit: Corporation, trust, or association that operates primarily for scientific, educational, service or charitable capacity in the public interest. The goal is not to make a profit, but rather to use proceeds to maintain, improve or expand operations.

OMB Circular A-110: "Uniform administrative requirements for grants and other agreements with institutions of higher education, hospitals and other nonprofit organizations" (OMB, 1999, 3.).

OMB Circular A-122: Cost principles for nonprofit organizations.

OMB Circular A-133: Audits of states, local governments, and nonprofit organizations.

The Office of Management and Budget (OMB): This office is responsible for providing expert advice to people in the White House senior positions. The advice can span a variety of topics such as federal policy, legislature, national budget, and management.

Public-Private Partnerships: The sharing of responsibility by the government and private sectors in the designing, planning, financing and operating of projects.

Social Welfare Programs: Often referred to as public charities, these programs have historically been funded by the government and deal with educational, cultural or medical programs.

Unconditional Pledge: Refers to a pledge that does not rely on an unforeseen event like a matching grant from another donor.

Bibliography

Abraham, A. (2006). Financial management in the nonprofit sector: A mission-based approach to ratio analysis in membership organizations. Journal of American Academy of Business, Cambridge, 10(1), 212-217. Retrieved September 3, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=22989433&site=ehost-live

Balser, D., & McClusky, J. (2005). Managing stakeholder relationships and nonprofit organization effectiveness. Nonprofit Management & Leadership, 15(3), 295-315. Retrieved September 3, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=16345555&site=ehost-live

Bottiglieri, W. A., Kroleski, S. L., & Conway, K. (2011). The regulation of non-profit organizations. Journal of Business & Economics Research, 9(9), 51-60. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=65811246&site=ehost-live

Bourgeois, K (2003). Nonprofit financial statements. Master's Thesis. Retrieved September 1, 2007 from: http://aad.uoregon.edu/icas/project%5Fthesis%5Fpdf/bourgeois%5Fk.pdf

Bryce, H. (2007). The public's trust in nonprofit organizations: The role of relationship marketing and management. California Management Review, 49(4), 112-131. Retrieved September 3, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=25995885&site=ehost-live

Elmerraji, J. (2007, May 25). Navigating government and nonprofit financial statements. Investopedia. Retreived September 2, 2007, from: http://www.investopedia.com/articles/basics/07/government%5Fnonprofit%5Fstatements.asp

Financial Accounting Standards Board. (2003). Accounting for contributions received and contributions made. Retrieved September 2, 2007, from: http://www.1800net.com/nprc/fasb116.html

Financial Accounting Standards Board. (2003). Financial statements of not-for-profit organizations. Retrieved September 2, 2007, from: http://www.1800net.com/nprc/fasb117.html

Husock, H. (2007). Stock market for nonprofits. Society, 44(3), 16-23. Retrieved September 3, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=23825352&site=ehost-live

Kelley, C. & Anderson, S. (2006). Advising nonprofit organizations. CPA Journal, 76(8), 20-26. Retrieved September 3, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=22080045&site=ehost-live

Kuna, S., & Nadiv, R. (2013). Organizational development dilemmas in nonprofit organizations in difficult economic time. Organization Development Journal, 31(2), 62-71. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=89175980&site=ehost-live

Robinson, J.H. (2006). Monitoring your organization's financial health-A CEO's guide. Society for Nonprofit Organizations. Retrieved September, 4, 2007, from http://www.snpo.org

Single audits circular no. A-133: Audits of states, local governments, and non-profit organizations. (2005). In The AICPA audit committee toolkit. New York, NY: American Institute of Certified Public Accountants. Retrieved September 5, 2007, from http://www.aicpa.org/audcommctr/toolkitsnpo/Single%5FAudit%5FAct.htm

Study: Half of U.S. charitable organizations report an uptick in fundraising during 2011. (2012). Nonprofit Business Advisor, (272), 8. Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=74618360&site=ehost-live

Tightening NPOs' controls and procedures. (2006). Practicing CPA, 30(5), 6. Retrieved September 3, 2007, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22366142&site=ehost-live

United States Office of Management and Budget. (1999). Circular A-110. Retrieved September 4, 2007, from http://www.whitehouse.gov/omb/circulars/a110/a110.html

What are the differences between nonprofit and for-profit accounting? (2004). Alliance for Nonprofit Management. Retrieved September 2, 2007 from: http://www.allianceonline.org/FAQ/financial%5Fmanagement/what%5Fare%5Fdifferences.faq

Yetman, M. H., & Yetman, R. J. (2012). The effects of governance on the accuracy of charitable expenses reported by nonprofit organizations. Contemporary Accounting Research, 29(3), 738-767.Retrieved November 15, 2013, from EBSCO Online Database Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=79955255&site=ehost-live

Suggested Reading

Helmig, B., Jegers, M. & Lapsley, I. (2004). Challenges in managing nonprofit organizations: A research overview. Voluntas, 15(2), 101-116. Retrieved September 3, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=13598024&site=ehost-live

Jegers, M. & Lapsley, I. (2003). Foreword: The 21st century challenge: managing charitable entities as business enterprises. Financial Accountability & Management, 19(3), 205-207. Retrieved September 3, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=10236157&site=ehost-live

Owen, J. (2004) Nonprofits without audit committees. Society for Nonprofit Organizations. Retrieved September, 4, 2007, from http://www.snpo.org

Panepento, P. (2007). Rising costs put pressure on charity budgets. Chronicle of Philanthropy, 19(16), 48. Retrieved September 3, 2007, from EBSCO Online Database Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=25377160&site=ehost-live

Sarbaines-oxley prompts nonprofits to take action. (2005). Association Management, 57(6), 22. Retrieved September 3, 2007, from EBSCO Online Database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=17270775&site=ehost-live