Three New Technical Practice Aids for Nonprofits

From the Thompson Tax and Accounting e-newsletter comes the news of three new technical practice aids for nonprofits. You can download a PDF of them here. The highlights:

• TIS section 6140.20 discusses circumstances in which not-for-profit organizations with contribution revenue could have minimal or no fund-raising expense. It describes situations in which this would occur, thereby expanding the relevant guidance in the AICPA's Audit and Accounting Guide, Not-for-Profit Organizations.
• TIS section 6140.21 addresses the accounting treatment of professional fund-raiser charges. It states that these charges should be reported "gross," i.e., as fund-raising expenses, and should not be netted with contribution revenue.
• TIS section 6140.22 describes how an NPO may act as an agent or intermediary for a donor that has stipulated that certain resources be transferred to another NPO. It states that any compensation (including administrative fees) retained by the agent/intermediary NPO should be reported as fund-raising expense by the NPO that receives the contribution. The receiving NPO also reports the original amount contributed by the donor as contribution revenue.