Nonprofit Accounting

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

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