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Accounting Under Regulatory Scrutiny

March 11, 2019

State charity regulators have been increasing scrutiny of nonprofits’ financial statements, the U.S. Internal Revenue Service (IRS) Form 990s and solicitation materials in a number of key ways. These areas of growing scrutiny include nonprofits’ allocation of joint costs and valuation of non-cash donations. Many state regulators believe that charities are improperly using these accounting principles to hide their fundraising costs by unfairly inflating their program expenses. Read more at The NonProfit Times.