Nonprofit Financial Standards

Nonprofit financial standards are guidelines that ensure organizations present their financial information transparently, consistently, and accurately. They help nonprofits report on their income, expenses, assets, and liabilities in a way that stakeholders—such as donors, regulators, and the public—can understand and trust. These standards, like those set by the Financial Accounting Standards Board (FASB), promote accountability and comparability across organizations by providing a common framework for financial statements. This clarity supports informed decision-making, helps maintain public confidence, and ensures nonprofits operate ethically and sustainably.