Mind the GAAP: NFP Edition

Overview

Phil Marciano, partner at Citrin Cooperman, outlines the most frequent financial statement pitfalls he encounters while reviewing not-for-profit organizations. He highlights improper classification of assets and lease items, mishandling of conditional versus unconditional contributions, board-designated versus donor-restricted net assets, errors in functional expense and cash-flow presentations and overlooked non-cash gifts. Marciano stresses robust internal controls, staff training and vigilant board oversight to avoid these GAAP violations.