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The financial information that nonprofit trustees need and how they can get it
Author(s) -
Anthony Robert N.
Publication year - 1991
Publication title -
nonprofit management and leadership
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.844
H-Index - 54
eISSN - 1542-7854
pISSN - 1048-6682
DOI - 10.1002/nml.4130010407
Subject(s) - accounting , business , public relations , capital (architecture) , nonprofit organization , finance , political science , archaeology , history
With one exception, the accounting principles governing the information reported on the financial statements of nonprofit organizations should be the same as those for business organizations, and trustees should use this information to decide on budgets and analyze actual performance in essentially the same way as do business boards of directors. The exception is that nonprofit organizations receive capital contributions, which are rare in business corporations. In some nonprofit organizations, especially colleges, the information that trustees actually receive is confusing because of the unnecessary use of fund accounting and other peculiarities. Nevertheless, trustees can insist on businesslike financial statements.