The Financial Accounting Standards Board (FASB) recently announced changes in nonprofit financial-reporting requirements, which has not been done since 1993. However, this is not exactly as it seems. The requirements will not substantially improve nonprofit financial disclosure. Consequently, the biggest change requires nonprofits to “break out” program expenses from routine overhead costs. Some nonprofits exempt from this disclosure, however, often provide information voluntarily. Additionally, the FASB is simplifying how restricted-donor assets are presented. Because these new requirements were in the making for five years, it seems there is little hope for further change.
See Gary Weiss, The Latest Charity Reforms Don’t Go Far Enough, Barron’s, October 8, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
