Title Details

Malvern J. Gross, Jr. was the author of the first edition of this text and a significant contributor to many of the subsequent editions. He is a retired partner of Price Waterhouse (a predecessor to PricewaterhouseCoopers LLP) and a nationally recognized authority on accounting and financial reporting for not-for-profit organizations. he was chairman of the AICPA Subcommittee on Nonprofit Organizations that wrote the 1978 landmark Statement of Position for Certain Nonprofit Organizations, and of the Accounting Advisory Committee to the Commission on Private Philanthropy and Public Needs. He was a member of the committee that wrote the second edition o f Standards of Accounting and Financial Museum Accounting Handbook. He served as  an advisor to the Financial Accounting Standards board in the early phases of its work on setting accounting standards for not-for-profit organizations, and to the New York State Charities Registration Office, as well as an adjunct professor of accounting at Lehigh University, his alma mater. After retirement from Price waterhouse he was president of a not-for-profit organization, the National Aeronautics Association. He now lives in the San Juan Islands of the state of Washington.

John H. McCarthy served as the National Leader of PricewaterhouseCoopers' Education & Nonprofit Practice before his retirement in 2005. He was a coauthor of the sixth edition of this text. He also is the coauthor of Understanding Financial Statements: A Strategic Guide for Independent College and University Boards, published by t4he Association of Governing Boards of Universities and Colleges (1998), as well as several publications by PricewaterhouseCoopers including: The Changing Role of the Audit Committee (2004); Leading Practices for Colleges, Universities and Other Not-for-Profit Educational Institutions (2004); Leading Practices for Colleges, Universities and Other Not-for-Profit Educational Institutions (2004); A Foundation for Integrity (a 2004 guide for codes of conduct, conflicts of interest, and executive compensation); Meeting the Challenges of Alternative Investments (2004); Understanding Underwater Endowment Funds (2003); and Financial Reporting and Contributions: A Decision Making Guide to FASB Nos. 116-117 (1996) among others. He is a CPA who, for more than 36 years, served PricewaterhouseCoopers' education and not-for-profit clients, including many of the most prestigious institutions in the United States. He currently served on several not-for-profit boards. He is a past president of the Massachusetts Society of CPAs, Inc. (MSCPA) and a two-term member of the Governing Council of the AICPA. He has received numerous honors for his involvement in the community. He graduated from Boston College and has an MBA from the University of Michigan Business School.

Nancy E. Shelmon is a senior partner of PricewaterhouseCoopers LLP and is the firm's West Region Leader for the Education and Not-for-Profit Industry within the United States. Nancy is a frequent speaker at AICPA and state CPA conferences on financial reporting and accounting issues affecting not-for-profit clients for over thirty years and has been involved with some of the most widely respected organizations in North America. Nancy served on the Board of Directors of the Los Angeles Urban Leaguer, the California Journal and Executive Service Corps of Southern California. In addition to being a CPA, she is also a Certified Fraud Examiner. She holds her accounting degree from the University of Minnesota.

Chapter 1 Responsibilities for Fiscal Management 1

PART ONE KEY FINANCIAL CONCEPTS 13

Chapter 2 Accounting Distinctions between Not-for-Profit and Commercial Organizations 15

Chapter 3 Cash- versus Accrual-Basis Accounting 23

Chapter 4 Fund Accounting and Internal Financial Reporting 33

Chapter 5 Fixed Assets and Depreciation 49

Chapter 6 Investment Income, Gains and Losses, and Endowment Funds 61

Chapter 7 Affiliated Organizations, Pass-Through Transactions, and Mergers 79

Chapter 8 Contributions, Pledges, and Noncash Contributions 101

Chapter 9 Accounting Issues Relating to Fundraising 139

PART TWO FINANCIAL STATEMENT PRESENTATION 155

Chapter 10 Cash-Basis Financial Statements 157

Chapter 11 Accrual-Basis Financial Statements 169

Chapter 12 Multiclass Financial Statements 181

PART THREE ACCOUNTING AND REPORTING GUIDELINES 229

Chapter 13 Voluntary Health and Welfare Organizations 231

Chapter 14 Colleges and Universities 263

Chapter 15 The External Financial Statement Reporting Model for Public Colleges and Universities and Other Not-for-Profit Organizations Reporting under the GASB 273

Chapter 16 Health Care Providers 301

Chapter 17 Accounting Standards for Other Not-for-Profit Organizations 343

Chapter 18 Special Accounting Issues for Specific Organizations 355

Chapter 19 The Financial Accounting Standards Board and Future Trends in Not-for-Profit Accounting 373

PART FOUR CONTROLLING THE NOT-FOR-PROFIT ORGANIZATION 393

Chapter 20 The Importance of Budgeting 395

Chapter 21 Avoiding Bankruptcy 419

Chapter 22 Small Organizations—Obtaining the Right Accountant 435

Chapter 23 Small Organizations—Providing Internal Control 443

Chapter 24 Effective Internal Accounting Control for Not-for-Profit Organizations 455

Chapter 25 Independent Audits 483

Chapter 26 Investments 511

PART FIVE PRINCIPAL FEDERAL TAX AND COMPLIANCE REQUIREMENTS 527

Chapter 27 E-Business for Not-for-Profit Organizations: How Can Not-for-Profits Manage the Risks to Maximize E-Business Opportunities? 529

Chapter 28 Principal Tax Requirements 565

Chapter 29 Audits of Federally Funded Programs 617

PART SIX SETTING UP AND KEEPING THE BOOKS 631

Chapter 30 Cash-Basis Bookkeeping 633

Chapter 31 Simplified Accrual-Basis Bookkeeping 651

Chapter 32 Full Accrual-Basis Bookkeeping 671

Chapter 33 Fund Accounting Bookkeeping 689

Chapter 34 Automating the Accounting Records 703

Appendix A Accounting and Disclosure Guide for Not-for-Profit Organizations 717

Appendix B Code of Conduct 729

Appendix C Basic Template for an Audit Committee Charter 741

Index 749