Case Study: Nonprofit Habitat For Humanity

Decent Essays
FASB’S As a nonprofit organization there are different rules and regulations that have to be followed when reporting the nonprofit’s finances. Within the world of non-profits there are several different ways for the organization to report the finances for the previous year. This is needed so that both the donors and the receipts of the funds can see if the funding is being used for same purpose in which they were raised. The Financial Accounting Standards Board (FASB), have created the Statement of Financial Accounting Standards (SFAS 117) that would make the financial records more understandable to donors and even stakeholders (McLaughlin, 2009). This paper will review the nonprofit Habitat for Humanity and how the organization does or does…show more content…
117 is not required by the IRS, but some the organizations have decided to share some of the information that is usually located in the SFAS 117. There are several statements that have to be prepared in the SFAS 117 for the organization to be considered as a nonprofit that complies with the FASB. The statements that should be included are the, Statement of Financial Position, Statement of Activities, Statement of Cash Flows, and Statement of Functional Expenses (Miller, 2009). The statement of financial position is also known as the balance sheet, and it shows the assets and liabilities for a nonprofit. It is also considered as the overall view of the organization’s financial health (Miller, 2009). The statement of activities is the income state worksheets. Statement of activities reports the revenue, expenses, gains and losses for the organization. The statement of cash flow is a report that shows what funding is considered as cash and what is considered as investments. Lastly, the functional expense reporting statement is a report that helps classify all of the organization’s expenses (Miller, 2009). After having a complete overview of what is has to be present in order for a nonprofit to be considered as complying with the FASB, it is a true fact that the Habitat for Humanity does comply with the
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