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Nonprofits and transparency: FASB new standard


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Data transparency

Transparency: the mantra of every nonprofit organization. Maintaining a transparent and efficient operation, transparency when reporting and answering to donors, no matter how you phrase it, transparency is the one constant. Sure, the reasons are obvious: there are rules and guidelines to follow. Reporting must be consistent and clear, without exception. Whether you’re the champion for a local, regional cause, or a beacon for a nationwide program, transparency, and the rules and compliance guidelines, all cast their shadow of oversight.

Here's what’s new

Last month, the Financial Accounting Standards Board announced a new standard applicable to all nonprofit entities using GAAP-based financial statements. This adjusted requirement creates greater efficiencies with respect to

  • how a nonprofit classifies its net-assets

  • the information contained in financial statements, including liquidity, financial performance and cash flows

  • the standard of communication between nonprofits and stakeholders

But these new requirements also implement an improved standard of reporting, presentation and disclosures. So all those items that you were already reporting on, from investment return, expenses, availability of resources and liquidity, to name a few, are now subject to a heightened, improved level of reporting. Great.

Which accounting software is right for your business?

Win-win

In the long run though, everyone benefits: Stakeholders, donors, the people you’re helping, and you, will all be able to better assess your…

  • Availability of resources

  • Liquidity and financial flexibility

  • Financial performance

  • Nonprofit’s executive of stewardship responsibilities

While these new standards don’t go into effect right away (effective for annual financial statements for fiscal years beginning after 12/15/2017), it’s a good idea to start looking at accounting solutions that can accommodate these new guidelines while promoting transparency.

What if you had an accounting software application that could accommodate this new standard of reporting? What if this same solution made it easy to…

  • Generate financial reports?

  • Track expenses?

  • Provide a strong audit trail?

Even better, what if it could do all that (and so much more) while promoting transparency and efficiency, without suffering from the overwhelming cost of most higher end solutions? Well, Gravity Software® (Gravity) delivers all of that and more. Nonprofits can find their second wind, meet new requirements and achieve the same goals when switching to Gravity because they’re able to accomplish more in less time.

With ease of data accessibility and intuitive dashboard drill down capabilities,

  • financial reports are generated,

  • expenses are tracked,

  • audit trails are illuminated, and

  • disclosures are clear

  • so transparency and efficiency are never sacrificed.

Gravity’s goal is to fill the gap between entry level accounting software like QuickBooks and expensive enterprise applications. Learn how you can apply this exciting technology to your business and schedule your online demo today. My business is connected. Is yours?

Gravity Software

Better. Smarter. Accounting.

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