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Nonprofit Management
May 20, 2022
Here at UST, we aim to create content designed to educate 501(c)(3) nonprofit leaders and strengthen the nonprofit sector. As part of our on-going commitment to serve nonpro...
Read MoreAboutOn-Demand Webinars: HR Strategies and Risk Management Tactics
Nonprofit Management
March 04, 2022
In the latest rendition of UST Live, we were joined by thought leaders from across the U.S. with expertise in nonprofit advocacy.
Read MoreAbout[Webinar Recording] UST Live: Advocacy & Legislative Support for Nonprofits
Nonprofit Management
February 10, 2022
The grantmaking process is often exclusive and expensive, making it accessible to those select nonprofits with the right expertise and networks, which can be costly for orga...
Read MoreAboutFour Ways to Create an Equitable Grantmaking Process
Nonprofit Management
January 27, 2022
Today's increasingly virtual landscape—along with the workforce's evolving strategic priorities—has not only changed how we work, but i...
Read MoreAboutEmployee Engagement and Nonprofit Brand Strategies
Nonprofit Management
January 24, 2022
Members are a vital key to success when sustaining and growing your association and retaining those members ensures a long-term survival of your nonprofit organization.
Read MoreAboutFive Best Practices to Improve Nonprofit Member Retention
Nonprofit Management
December 09, 2021
Nonprofit managers are relied upon to not only lead productive teams, hold employees accountable, and manage processes but are also expected to engage and motivate employees...
Read MoreAbout2021 Nonprofit Leadership Toolkit
Nonprofit Management
November 19, 2021
Whether you’re aspiring to be an executive leader, get promoted into a director’s position, or even launch your own nonprofit—rarely there are clearly defined pat...
Read MoreAboutHow to Grow into a Nonprofit Leader
Nonprofit Management
October 28, 2021
A strong leadership team is vital to the success of any nonprofit organization—without it you risk reduced productivity, delayed decisions, and low morale.
Read MoreAbout2021 Employer Guide: Nonprofit Leadership Development
Nonprofit Management
October 14, 2021
As employers continue to strategize for the future—paving the way for flexible work models and creative retention tactics—many are seeing permanent cha...
Read MoreAbout2021 Nonprofit Workforce Trends Infographic

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HR Knowledge
August 12, 2022
Question: What are effective ways to manage remote employees and monitor their work? 
Read MoreAboutHR Question: Managing Remote Employees
HR Management
July 21, 2022
A major shift has been underway, fundamentally altering, when, where, and how work occurs. As organizations adjust to today’s new hybrid workplace, collaboration among team ...
Read MoreAboutFive Tips for Successfully Leading a Hybrid Workforce
HR Knowledge
July 15, 2022
As of early 2020, the nonprofit employment sector is reported to be the third largest in the nation, following manufacturing and retail. Job statistics will no doubt remain ...
Read MoreAboutHire and Develop Managers People Want to Work For
HR Knowledge
July 08, 2022
Online trainings can be a useful tool for developing talent, but they can also end up being a waste of time and resources, even if the content and presentation are good.
Read MoreAboutHR Question: Ensuring Your Online Training Strategies Are Effective
HR Knowledge
June 30, 2022
Without the staff to support your mission-driven initiatives nonprofits across the globe wouldn’t exist.
Read MoreAboutCelebrate Success in the Workplace to Increase Engagement
HR Knowledge
June 24, 2022
Employees are the backbone of every nonprofit and your most valuable asset—contributing to the overall success (or failure) of your organization.
Read MoreAboutHow to Help Employees with Career Development
HR Knowledge
June 17, 2022
Modern benefits are indeed useful for retention but that is not the whole story. To be fully engaged, nonprofit employees need to feel they have a say in what goes on at wor...
Read MoreAboutSolicit Involvement for Employee Engagement Initiatives
HR Knowledge
June 10, 2022
In this post, we’ll take a look at where we are today, how we got here, and what you can do to help your staff cope with that wild and wicked ride known as STRESS.
Read MoreAboutStress in the Workplace: How is it Affecting Your Employees
HR Knowledge
June 03, 2022
An employee says that the stress of the job is affecting their mental health. How should we handle this?
Read MoreAboutHR Question: Stress on the Job
HR Knowledge
May 26, 2022
If you haven’t experienced it, consider yourself lucky. Most of America’s workers have, at one time or another, faced problems with a toxic workplace culture.
Read MoreAboutCreating a Unified Company Culture

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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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