Welcome to the AICPA's Not-for-Profit Resource Library!
The following resources are created and intended as an individual benefit of AICPA Not-for-Profit Section membership. The material is copyrighted and may not be used without permission this includes any further distribution of the materials (including posting on a website).
These resources are designed as educational and reference material; they do not establish standards or preferred practices, and they are subject to change. Where specific permission is granted for use (not distribution or posting), users are responsible for final content; please review those resources carefully and make any changes necessary for your specific use.
NFPs prepare financial statements to report critical information about programs and operations to a diverse group of stakeholders. Users of an NFP’s financial statements include donors, grantors, creditors, program beneficiaries, and others who have a need to assess the financial health of the NFP. The ability to provide accurate reports allows an NFP to monitor income and expenses and ensure that the organization is operating within its budget and within agreed-upon guidelines. This is crucial to successful stewardship of the NFP’s resources.
Resources such as example financial statements and articles on accounting topics such as contributions and functional classification of expenses are available here.
An audit of an NFP's financial statements provides financial statement users with an opinion by the auditor about whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework, which enhances the degree of confidence that intended users can place in the financial statements. There are certain aspects of performing an audit for an NFP that are unique.
Some tools that auditors can use when performing their engagement, such as examples of auditor communications, templates and account workpapers, are available here.
Compliance with applicable laws and regulations is key to the success of NFPs. The regulatory environment for NFPs is always changing. NFPs and their auditors run the risk of not remaining informed. Some of the key areas that affect NFPs are: obtaining and maintaining tax-exempt status, federal and state filing requirements, and state charitable solicitation laws.
Visit our tax compliance resource page for information on Form 990, unrelated business income taxes, accountable plans, and state requirements.
In most NFPs, governance is a shared responsibility between executive management and the governing body. An active and engaged board is important to the success of an NFP and compliance with applicable laws.The NFPs managers and board members work together to ensure that the organization has clear strategic priorities that are aligned with its mission and that the NFP's resources are employed appropriately and efficiently in maximizing its impact.
On our governance resource page you will find articles on board responsibilities and financial oversight, resources for audit committees, a primer on grants management and more.