Most articles on this site deal with companies that operate for profit. In this article, we discuss a few differences encountered when accounting for companies that have non-for-profit purposes.
1. General aim of non-for-profit accounting
Unlike businesses that operate for profitable gain, not-for-profit (NFP) entities have no shareholders. They do not have to satisfy investors with regular reports of activities that could eventually lead to future gain. On the other hand, NFP organizations are regularly entrusted with millions of dollars in donations by individuals or entities that want to make sure their gifts are being used wisely. Accounting for these NFP entities is therefore somewhat different than accounting for a profit-oriented company.
For more click here:-
Introduction to non-for-profit accounting
1. General aim of non-for-profit accounting
Unlike businesses that operate for profitable gain, not-for-profit (NFP) entities have no shareholders. They do not have to satisfy investors with regular reports of activities that could eventually lead to future gain. On the other hand, NFP organizations are regularly entrusted with millions of dollars in donations by individuals or entities that want to make sure their gifts are being used wisely. Accounting for these NFP entities is therefore somewhat different than accounting for a profit-oriented company.
For more click here:-
Introduction to non-for-profit accounting
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