Nonprofit Accounting Standards

Nonprofit accounting standards are a set of rules that organizations like charities and foundations follow to accurately record and report their financial activities. These standards ensure transparency, consistency, and accountability, helping donors, grantors, and stakeholders understand how funds are used. They specify how to recognize income, expenses, assets, and liabilities, and require nonprofits to produce financial statements that clearly show their financial health and activities. Following these standards fosters trust and demonstrates responsible management of resources dedicated to their mission.