AcSEC becomes strict on fundraising.The American Institute of CPAs accounting standards executive committee is issuing a new Statement of Position, Accounting for Costs of Activities of Not-for-Profit Organizations and State and Local Governmental Entities That Include Fund Raising. It supersedes guidance in SOP 87-2, Accounting for Joint Costs of Informational Materials and Activities of Not-for-Profit Organizations That Include a Fund-Raising fund-raising, large-scale soliciting of voluntary contributions, especially in the United States. Fund-raising is widely undertaken by charitable organizations, educational institutions, and political groups to acquire sufficient funds to support their activities. Appeal, which was incorporated into the 1996 Audit and Accounting Guide Not-for-Profit Organizations. "The new statement is broader and stricter than SOP 87-2," Kenneth Williams Kenneth Charles Williams (22 February 1926 – 15 April 1988) was an English comic actor, star of twenty six Carry On films and notable radio comedies with Tony Hancock and Kenneth Horne, as well as a witty raconteur on a wide range of subjects. , past chairman of the not-for-profit organizations committee, told the Journal. "Reporting criteria are delineated de·lin·e·ate tr.v. de·lin·e·at·ed, de·lin·e·at·ing, de·lin·e·ates 1. To draw or trace the outline of; sketch out. 2. To represent pictorially; depict. 3. more clearly. Reporting in this area had been problematic even before SOP 87-2, and we wanted to provide preparers and practitioners with some guidance to improve comparability of statements." Definition problems NPOs have had a lot of latitude latitude, angular distance of any point on the surface of the earth north or south of the equator. The equator is latitude 0°, and the North Pole and South Pole are latitudes 90°N and 90°S, respectively. in deciding what was a fundraising activity and what was a program activity, that is, an activity related to another aspect of the entity, such as providing shelter to the homeless. "This SOP makes rules less vague. It provides specific guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. but there is still some room for judgment," said Williams. During the exposure period, many NPOs requested a wide latitude for classification, while representatives of regulatory and watchdog groups lobbied for more rigid standards for determining a fundraising activity. The new guidance essentially provides a function test and even a flowchart to help NPOs determine how to classify clas·si·fy tr.v. clas·si·fied, clas·si·fy·ing, clas·si·fies 1. To arrange or organize according to class or category. 2. To designate (a document, for example) as confidential, secret, or top secret. a given activity. Scope The new standard, to be issued this summer, will be effective for financial statements for years beginning on or after December 15, 1997. Earlier application is encouraged in fiscal years for which financial statements have not been issued. It will apply to all NPOs and state and local government entities required to report fundraising expenses or expenditures. See "New Role for NPO NPO [L.] nil per os (nothing by mouth). NPO abbr. Latin nil per os (nothing by mouth) NPO Nothing by mouth CPAs" (below) for details on how charities will be affected. |
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