Recently The American Institute of Certified Public Accountants (AICPA) released additional guidelines regarding how charitable organizations report expenses related to fundraising efforts. These new guidelines cover three specific situations:
- Nonprofit organizations (NPOs) reporting no fundraising expenses.
- Should an NPO report amounts charged to the NPO by a professional fundraiser gross (as fundraising expenses) or net (as a reduction of contributions)?
- Situation that the reporting NPO undertakes a transaction in which another NPO (fundraising NPO) raises contributions on behalf of the reporting NPO.
For more information see the Association of Fundraising Professionals news release on this topic and the AICPA Section 6140 Document
