Nonprofit Accounting

Upon successful completion of this course, participants will be able to:

Learning Objectives;

•Cite the criteria used to define a nonprofit organization;

•Specify the essential building blocks of an accounting system;

•Identify the types of nonprofit financial statements and the comparable for-profit financial statements;

•Specify the instances in which revenue and gains can be recognized by a nonprofit;

•Cite the methods used to assign costs to a grant-funded program;

•State the applicable rules related to the recognition of investment assets.

•Identify the costing characteristics of the various cost layering methodologies;

•Identify the options available for recognizing a collection;

•Recall how the 12-month lease exception works;

•Specify the different types of lease payments;

•Recognize the components of net periodic pension cost, and the accounting for a defined contribution plan;

•Identify the types of joint costs, and the tests used to determine whether fundraising costs can be allocated;

•Define the situations in which accounting principles can be changed, and when retrospective application is allowed;

•State the concept of the principal market and the basis upon which fair value is determined;

•Cite the accounting for a contribution receivable, as well as the steps involved in a petty cash reconciliation;

•Identify the accounting associated with split-interest agreements, as well as the nature of lead and remainder interests;

•Specify the circumstances under which the reporting consolidation of two or more entities is required or allowed;

•Recognize the situations in which the carryover and acquisition methods are used, and whether goodwill or an inherent contribution can be recorded for an acquisition transaction;

•State the IRS forms used for various nonprofit tax reporting activities, and the circumstances under which they must be filed;

•Cite the steps involved in closing the books at the end of a reporting period;

•Identify the line items used in nonprofit budgets and cash forecasts;

•Specify the considerations to be reviewed when creating controls, as well as the controls employed in the cash, fixed asset, payables, and other accounting areas;

•Recognize the considerations involved in setting policies for collections, asset dispositions, and employee labor; and

•Cite the types of analysis that can be employed to yield insights into the financial condition and fundraising effectiveness of a nonprofit.