Financial and Accounting Guide for Not-for-Profit Organizations »

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.

For this new edition of their text, the authors (all of PricewaterhouseCoopers) are writing for those who have more fully conformed to Financial Accounting Standards Nos. 116 and 117 than at the time of the last edition, at which point they were relatively new. They begin the text with an explanation of key financial concepts, presenting chapters on accounting distinctions between not-for-profit and commercial organizations; cash-versus accrual-basis accounting; fund accounting and internal financial reporting; fixed assets and depreciation; investment income, gains and losses, and endowment funds; affiliated organizations, pass-through transactions, and mergers; contributions, pledges, and noncash contributions; and accounting issues relating to fundraising. They then explain the different classes of financial statements and describe the accounting and reporting guidelines applicable to educational, health care, and other not-for-profit organizations. Chapters then look at the importance of budgeting, avoiding bankruptcy, obtaining the right accountant for small organizations, providing internal control for small organization, effective internal accounting control, independent audits, and investments. Principal federal tax and compliance requirements are presented before the text concludes with chapters on setting up and keeping the books. Annotation ©2006 Book News, Inc., Portland, OR

Booknews

Written chiefly for managers of not-for-profit organizations, this book offers guidance on the management of financial resources and effectively communicating the organization's financial activities to its members and the public. It also provides instruction on the interpretation of annual financial reports, and their uses in making informed decisions. Compliance requirements are detailed for each state, and specific recommendations are provided. Issues related to control and book-keeping are emphasized. Annotation c. Book News, Inc., Portland, OR (booknews.com)

Responsibilities of Treasurers and Chief Executive Officers.
KEY FINANCIAL CONCEPTS.
Accounting Distinctions between Not-for-Profit and Commercial Organizations.
Cash versus Accrual Basis Accounting.
Fund Accounting and Internal Financial Reporting.
Interfund Transfers and Appropriations.
Fixed Assets--Some Accounting Problems.
Fixed Assets--Depreciation.
Investment Income, Gains and Losses, and Endowment Funds.
Affiliated Organizations, "Pass-Through" Transactions, and Mergers.
Contributions, Pledges, and Noncash Contributions.
Accounting Issues Relating to Fundraising.
FINANCIAL STATEMENT PRESENTATION.
Cash Basis Financial Statements.
Accrual Basis Financial Statements.
Multiclass Financial Statements.
ACCOUNTING AND REPORTING GUIDELINES.
Voluntary Health and Welfare Organizations.
Colleges and Universities.
Health Care Providers.
Accounting Standards for Other Not-for-Profit Organizations.
Special Accounting Issues for Specific Organizations.
The Financial Accounting Standards Board and Future Trends in Not-for-Profit Accounting.
CONTROLLING THE NOT-FOR PROFIT ORGANIZATION.
The Importance of Budgeting.
Avoiding Bankruptcy.
Small Organizations--Obtaining the Right Bookkeeper.
Small Organizations--Providing Internal Control.
Effective Internal Accounting Control for Not-for-Profit Organizations.
Independent Audits.
Investments.
PRINCIPAL FEDERAL TAX AND COMPLIANCE REQUIREMENTS.
Principal Federal Tax Requirements.
Principal Federal Tax Forms Filed.
State Compliance Requirements.
Audits of Federally Funded Programs.
SETTING UP AND KEEPING THE BOOKS.
Cash BasisBookkeeping.
Simplified Accrual Basis Bookkeeping.
Full Accrual Basis Bookkeeping.
Fund Accounting Bookkeeping.
Automating the Accounting Records.
Appendices.
Bibliography.
Index.