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The Complete Guide to Nonprofit Accounting Careers

The Charity CFO

The nonprofit sector is full of rewarding and impactful careers because it plays a crucial role in addressing various social, environmental, and humanitarian challenges. In this section, we will debunk the three most common nonprofit accounting myths. The value of this ownership is summarized as equity on the balance sheet.

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What to look for in nonprofit accounting financial statements

The Charity CFO

Nonprofit accounting financial statements may seem like a chore. Nonprofits use financial statements to comply with IRS regulations, build trust with donors, and plan for the future. You may think that nonprofit financial statements are the same as those at for-profit companies, but this is not the case.

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Discovering The Tax Implications of Nonprofits Owning For-Profit Businesses

The Charity CFO

Tax-exempt status makes it easier for your organization to retain nonprofit revenue and meet the goals of your mission. However, your nonprofit may engage in revenue-generating activities that don’t relate to the purpose of your organization. The nonprofit must have control over the charitable activities of the venture.

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Restorative Compensation: Moving from Theory to Practice

NonProfit Quarterly

Image credit: fizkes on istock.com This article accompanies the recent NPQ webinar, “ Compensation Equity: Operationalizing Justice Values in Nonprofit Pay Structures ,” presented by the authors. They are asking: “Is how we pay our own workers in alignment with our proclaimed values and external-facing work?”

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New Rules For Nonprofit Lease Accounting: ASC 842 Explained

The Charity CFO

We’ll tell you all you need to know about complying with these new rules when accounting for leases of all types. What is ASC 842 for nonprofit lease accounting? All nonprofit accounting rules in the United States are defined and codified by the Financial Accounting Standards Board, or “FASB”.

Finance 98
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Statement of Financial Position: Reading a Nonprofit Balance Sheet

The Charity CFO

It gives you a snapshot of a nonprofit’s financial health at a point in time by displaying what the organization owns (assets), what it owes to others (liabilities), and its value (net assets). Net assets: What is your value? In nonprofit accounting, we refer to it as Net Assets.

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What Are Net Assets?

The Charity CFO

And one of the key differences is that nonprofits talk about net assets rather than net income or equity. It’s mostly a difference in terminology in nonprofit accounting vs. for-profit accounting. But it’s not a term that most non-accountants are familiar with, and there are a few differences in how it’s reported.