Assignment: Summarize NFP Accounting Practices
Not-for-Profit (NFP) organizations operate in a complex environment of limited resources, Federal and State oversight, and public scrutiny. NFPs have unique IRS reporting requirements and accounting standards that affect how they set up and monitor their books, transactions, and financial practices.
1. Visit a local NFP in your neighborhood other than a religious facility. You can usually find a food bank, or neighborhood service facility. Interview a member of the board preferably the financial accountant or the Director. Ask them 3-5 questions about the startup of organization. Document your questions and their responses as a supplement to your paper.
2. Discuss the generally accepted accounting principles (GAAP) followed in preparing the required financial statements, and the differences between NFP and for-profit environments.
Support your paper with a minimum of five (5) scholarly resources.
Length: 5 pages (not including title and reference pages)