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.