Do Nonprofits Use Cash or Accrual Accounting?
The Charity CFO
APRIL 5, 2022
Cash accounting does not comply with Generally Accepted Accounting Principles (GAAP) for nonprofit organizations. So if you expect to grow or search for new sources of funding, you’ll probably need to graduate to accrual-basis accounting. Also, revenue must be recorded when it is actually or “constructively” received.
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