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Nonprofit Organizations: Not-For-Profit Analysis

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The ability to convey financial information in a simplified manner without hiding or misrepresenting the financial standing can be challenging. There are many different types of nonprofit organizations and each meets a specific need. I work for an organization that began serving a particular population of homeless individuals in Jacksonville Florida in 1972. We have grown, changed and adapted over the years, which has been determined by data, changes in need, and governmental indicators. This nonprofit has grown from a small, two-person organization to an agency employing thirty full time employees. As a result, capacity has increased, as well as funding of which is now approximately $7 million in Federal and State grants serving Northeast Florida. These funds need to be represented in a financial statement that is consistent with regulations that have been established for nonprofits. The Financial Accounting Standards Board (FASB) is an …show more content…

117,” n.d.). These guidelines have been established to provide consistency in reporting and transparency in financial processes. The organization that I work for uses an accounting software system that allows us to pull these financial reports at any given moment. These reports are also used to review our financial standing, to monitor the transactions that have been posted to the chart of accounts, and to offer a financial explanation of transactions to the finance committee and to the board of directors. “That said, we must distinguish between the nature of external reporting governed by SFAS 117 and the internal needs of management” (Mclaughlin, 2009, p. 95). Prior to the monthly finance committee meeting, the financial

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