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Nonprofit Management
May 19, 2023
As a nonprofit organization, it is essential to have a cohesive and productive team in order to efficiently achieve your mission and goals.
Read MoreAboutThe Benefits of Team Building Exercises for Nonprofit Employers
Nonprofit Management
March 28, 2023
America's charitable nonprofits serve and nurture people of every age, gender, race, and socioeconomic status—supporting at-risk communities nationwide.
Read MoreAbout[Webinar Recording] UST Live: Cybersecurity Risk Management
Nonprofit Management
March 16, 2023
Creating a positive culture in the workplace should be a priority for every nonprofit employer. A positive work environment can help increase employee engagement, morale, an...
Read MoreAbout5 Tips for Creating a Positive Workplace Culture
Nonprofit Management
March 02, 2023
While many foundations are well on their way with going mobile, start-ups and smaller organizations may still be trying to figure out how to establish a mobile presence in a...
Read MoreAboutThe Pros and Cons of Going Mobile
Nonprofit Management
December 20, 2022
No matter where society struggles or how much change comes to your nonprofit, everything always comes down to the people who form your team and support your community.
Read MoreAboutThe Changing Landscape of the Nonprofit Workforce
Nonprofit Management
December 16, 2022
From recruiting and training to engagement and retention, your organization has likely invested a great deal of time and effort into ensuring your volunteer program is succe...
Read MoreAbout[Webinar Recording] UST Live: Volunteer Management
Nonprofit Management
November 18, 2022
Some argue that they couldn’t prepare for the pandemic, because it was a black swan event—defined as unforeseeable.
Read MoreAboutImplementing Change to Build Resiliency
Nonprofit Management
September 30, 2022
In the latest rendition of UST Live, we were joined by thought leaders from across the U.S. with expertise in succession planning.
Read MoreAbout[Webinar Recording] UST Live: Succession Planning and Preparedness
Nonprofit Management
September 21, 2022
Working on a team requires more than just hard work, morale amongst co-workers, and willingness to work with others. The most important yet often ignored that attributes to ...
Read MoreAboutHow to Improve Communication Strategies with Your Team

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HR Knowledge
September 15, 2023
Running a nonprofit organization requires a tremendous amount of teamwork and collaboration.
Read MoreAboutEnhancing Remote Collaboration Throughout Your Workforce
HR Knowledge
September 08, 2023
Question: What are effective ways to manage remote employees and monitor their work? 
Read MoreAboutHR Question: Managing Remote Employees Work
HR Knowledge
August 31, 2023
Strong management is essential for any organization, and that certainly includes nonprofit organizations.
Read MoreAboutEssential Management Skills For Nonprofit Leaders 
HR Knowledge
August 21, 2023
Running productive meetings is a crucial aspect of ensuring a nonprofit organization's success—especially when the team is working remotely.
Read MoreAboutTips to Achieve Maximum Productivity in Remote Meetings
HR Knowledge
August 04, 2023
Question: What are some typical examples of employee discipline? Are there any you recommend?
Read MoreAboutHR Question: Employee Discipline
HR Knowledge
July 27, 2023
A strategic plan provides a clear process of determining, documenting, and establishing the direction of a nonprofit organization.
Read MoreAboutStrategic Planning in Nonprofit Leadership: Setting Goals And Achieving Impact
HR Knowledge
July 21, 2023
With the rise of remote work, more and more companies are forced to rely on virtual teams to get things done.
Read MoreAboutThe Power of Team Building for Remote Teams
HR Knowledge
June 30, 2023
High employee turnover can be a major challenge for nonprofit organizations.
Read MoreAbout[Webinar Recording] UST Live: HR Trends in Employee Retention
HR Knowledge
June 23, 2023
In recent years, the general workforce has been through a lot. They’ve faced discrimination, income loss, job insecurity, benefits insecurity, as well as a host of other pro...
Read MoreAboutCreate an Exceptional Employee Experience
HR Knowledge
June 16, 2023
In December 2022, Forbes discussed the state of workers and their feelings about remote and hybrid workplace models.
Read MoreAboutRemote Work and The Nonprofit Workforce

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​​​​​​​Lessons Learned from Implementing ASU 2016-14 – Functional Expenses

Are you familiar with the Accounting Standards Update (ASU) 2016-14 issued by FASB? It’s a standard created to offer solutions to simplify and improve how a nonprofit organization is able to classify its net assets, financial statements, liquidity, financial performance, and cash flows. Now, that organizations have begun to apply this new standard, they are encountering implementation issues that were not anticipated. 

When organizations are gathering and preparing their financial information, they’re being faced with making difficult decisions on how to best present this information. For example, an analysis of expenses by function and natural classifications can be presented in multiple ways however, what is the most efficient and most beneficial method to do so?

Tammy Ricciardello states “Our advice on the presentation? Keep it simple. Yes, the analysis of expenses by function and nature should show the natural expenses of the entity by program and supporting activities, but this doesn’t mean that every type of expense should be presented on its own line. A straightforward approach will prevent the presentation from becoming overly complex and unwieldy.”

It's important to remain focused on the information that is most useful and make sure that the one reading your financial statements can clearly understand the costs of each activity and where that activity is being allocated to. Remember, keep it simple.

To learn more about the best practices for implementing ASU 2016-14 functional expenses be sure to read the full article here.

Article provided by Tammy Ricciardella, CPA, Technical Director at BDO.

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