Wise Giving Wednesday: Accounting Board Proposes Charity Financial Statement Changes

Hero image for Wise Giving Wednesday: Accounting Board Proposes Charity Financial Statement Changes
calendar icon Jul 17, 2020

The Financial Accounting Standards Board (FASB) is an independent organization that establishes and improves standards for financial accounting for both for-profit and not-for-profit entities in the United States.  On April 22, 2015 the FASB announced proposed changes for all not-for-profit financial statements. It’s been quite some time since the audited financial statements of charities and other not-for-profits have been the subject of significant proposed changes.  Here at the BBB Wise Giving Alliance, we are especially interested in helping nonprofit leaders understand the potential impact of the updates proposed by FASB. BBB WGA has always focused on a charity’s audited financial statements (as opposed to the IRS Form 990) as part of its review.  While finances are addressed in just a portion of the 20 BBB Standards for Charitable Accountability, they understandably get a great deal of donor attention.  

Some of FASB’s proposed changes in the audited financial statements of charities include increased disclosures about financial asset liquidity (i.e., what portion of assets is available now), the sources and uses of a charity’s cash, and donor restrictions on the use of funds. To assist charity executives and others in understanding these changes, the BBB Wise Giving Alliance and the Metro New York BBB Education and Research Foundation are jointly offering a no-cost webinar on May 21, 2015 at 1pm EDT.  The webinar is generously sponsored by EisnerAmper LLP.  The two presenters will be Julie Floch and Candice Meth, both distinguished partners in not-for-profit practice at this well-known, BBB Accredited accounting firm.  While the webinar can accommodate up to 1,000 registrants, we encourage interested participants to sign up while there is still room. To learn more about the webinar and register visit: www.go.bbb.org/ny-fasbchanges 

Wise Giving Wednesday readers who are interested in providing FASB comments on their proposed accounting changes will have until August 20, 2015 to send comments to them.  For additional details, visit fasb.org.   Feedback can be provided to FASB directly through an electronic response form.  

We are always working with charities to publish or update reports for donors.  Visit Give.org or  local BBBs to check out any charity before giving.  Our recently evaluated charities include:    

Finally, remember to let us know by going to https://give.org/ask-us-about-a-charity1/ if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.  

H. Art Taylor, President & CEO
BBB Wise Giving Alliance

Stay Informed. Join Our Mailing List
This site is protected by reCAPTHA and the Google Privacy Policy and Terms of Service apply