Not-for-Profit Accounting Made Easy

A hands-on guide to the ins and outs of nonprofit accounting Not-for-Profit Accounting Made Easy, Second Edition equips you with the tools you need to run the financial and accounting operations within your nonprofit organization. Even if you do not have a professional understanding of accounting principles and financial reporting, this handy guide makes it all clear with complex accounting rules explained in terms nonaccountants can easily understand in order to help you better fulfill your managerial and fiduciary duties. Always practical and never overtechnical, this helpful guide conforms to FASB and AICPA standards and: * Discusses federal single audit and its impact on nonprofits * Offers examples of various types of split-interest agreements * Shows you how to read and understand a nonprofit financial statement * Explains financial accounting and reporting standards * Helps you become conversant in the rules and principles of accounting * Updates board members, executive directors, and other senior managers on the accounting basics they should know for day-to-day operations * Features tables, exhibits, and charts that illustrate the content in a simple and easy-to-understand manner Suitable for fundraising managers and executives--as well as anyone who needs to read and understand a nonprofit financial statement--this is the ultimate not-an-accountant's guide to nonprofit accounting.

A hands-on guide to the ins and outs of nonprofit accountingNot-for-Profit Accounting Made Easy, Second Edition equips you withthe tools you need to run the financial and accounting operationswithin your nonprofit organization. Even if you do not have aprofessional understanding of accounting principles and financialreporting, this handy guide makes it all clear with complexaccounting rules explained in terms nonaccountants can easilyunderstand in order to help you better fulfill your managerial andfiduciary duties. Always practical and never overtechnical, thishelpful guide conforms to FASB and AICPA standards and:* Discusses federal single audit and its impact on nonprofits* Offers examples of various types of split-interest agreements* Shows you how to read and understand a nonprofit financialstatement* Explains financial accounting and reporting standards* Helps you become conversant in the rules and principles ofaccounting* Updates board members, executive directors, and other seniormanagers on the accounting basics they should know for day-to-dayoperations* Features tables, exhibits, and charts that illustrate the contentin a simple and easy-to-understand mannerSuitable for fundraising managers and executives--as well as anyonewho needs to read and understand a nonprofit financialstatement--this is the ultimate not-an-accountant's guide tononprofit accounting.

Preface ixChapter 1 Understanding the Basics of Not-for-Profit Accounting 1What Are Generally Accepted Accounting Principles? 1Why Is Preparing GAAP Financial Statements Important? 2Definitions and Examples of Assets, Liabilities, Reve nues, and Expenses Usually Found in Not-for-Profit Organizations' Financial Statements 6What Is Meant by the Accrual Basis of Accounting? How Does This Differ from the Cash Basis of Ac- counting, and Which Is Better? 36What Happened to Fund Accounting? 40Summary 42Chapter 2 Basic Financial Statements of a Not-for-profit Organization 43Statement of Financial Position 44Statement of Activities 46Statement of Cash Flows 56Summary 63Chapter 3 Accounting for Contributions 65When Should Contributions Be Recorded? 66Understanding the Impact of Donor Restrictions on the Reporting of Contributions 72Accounting for Contributed Services 74Accounting for Other Noncash Contributions 75Pass-Through Contributions 76Summary 82Chapter 4 Accounting for Investments and Financial Instruments 83Accounting for Investments 84Accounting and Financial Reporting for Financial Instruments 98Summary 107Chapter 5 Accounting for Activities with Joint Costs and Indirect Cost Allocation 109Accounting for the Costs of Activities that Include Fund-Raising 110Allocation Methods 117Indirect Cost Allocation Plans 119Summary 124Chapter 6 Affiliated Organizations 125Affiliated Organizations 126For-Profit Subsidiaries 135Related-Party Disclosures 137Summary 140Chapter 7 Collections 141What Is a Collection? 142Accounting for Collections 143Summary 146Chapter 8 Split-Interest Agreements 147Accounting Fundamentals 148Revocable Split-Interest Agreements 149Irrevocable Split-Interest Agreements 150Examples of Split-Interest Agreements 153Summary 158Chapter 9 Accounting for Pension and Other Postretirement Employee Benefit Plans 159Accounting for Pension Plans 160Determining Pension Expense 164Determining Pension Liability 165Actuarial Assumptions and Calculations 168Required Disclosures 171Deferred Compensation Plans 172Other Postretirement Benefits 173Disclosures 176Summary 177Chapter 10 Lease Accounting Fundamentals 179Lease Accounting 180Operating versus Capital Leases 180Operating Leases 185Operating Leases with Scheduled Rent Increases 187Free Rent Periods 188Capital Leases 189Summary 193Chapter 11 Analyzing the Financial Health of Not-for-Profit Organizations 195Financial Statement Analysis 197Independent Auditor's Report 197Comparative Financial Statements 201Functional Expense Ratios and Other Analyses 203Budget Considerations in Financial Analysis 213Relation of the Budget to the Financial Statements 214Methods of Budgetary Control 216Summary 218Chapter 12 Current Developments in Not-for-Profit GAAP 221Recent FASB Statements 222Summary 228Index 229