Challenges of Nonprofit Accounting
Aside from being a slogan, Strength in Numbers also signifies NPFM’s ability to close the financial expertise gaps that typically plague nonprofit organizations.
Every nonprofit has a unique blend of operating income sources and constraints. Some funding streams are steady and recurring, while others must be renewed or replaced every year. Some are simple and unrestricted, while others come with many strings attached. It is detrimental to underestimate the challenges in nonprofit accounting. Nonprofits must satisfy the requirements of the following stakeholders within the confines of a limited budget:
- Internal Revenue Service
- FASB (Financial Accounting Standards Board)
- GAS (Government Auditing Standards)