Are You Ready for the New Non-Profit Reporting Requirements?

Are You Ready for the New Non-Profit Reporting Requirements?

Did you get the memo?  I didn’t!  So it’s time for me to start digging in to be sure I have the right info.

The FASB (Financial Accounting Standards Board) released a notice in April of 2015 outlining the proposed changes and the reasoning behind it.

In summary, stakeholders have called for a standard operating measure.  This standard operating measure allows all not for profits (NFPs) to be compared through their financial reports.  This will provide donors and lenders the financial and liquidity information to assess the NFPs they are interested in supporting or making loans to.

The proposed changes include:

  • Reporting expenses by nature and function
  • A net presentation of investment function and investment return
  • Two operating measures
    • Mission based
    • Availability for current activities
  • Fixed assets would have to utilize the placed in service approach
  • The current 3 net asset classes would be replaced by 2 – Net assets with donor restrictions and net assets without donor restrictions
  • The amount an endowment fund is “underwater” would change to be reported as with donor restrictions
  • The Direct Method of reporting cash flow would be required

You can review the original proposed changes here.

FASB (Financial Account Standards Board) has released their tentative decisions on the proposed changes.

Now we just need to look at what was decided, then figure out when to change! Use the link below to register and get copies of the decision made and how it will affect your organization.

Download and obtain FREE ACCESS to the decision by registering on Non-Profit Resources Section.


Contact us at if you would like to discuss further.