Exchange and Agency Transactions: Not-for-Profit Accounting & Financial Reporting
To achieve financial sustainability, NFPs diversify their revenue streams. Funding sources may include a mix of contributions, grants, awards and sponsorships, and earned income from the sale of goods or services. Under GAAP, these transactions are classified as contributions or exchange transactions, or a combination of both. Some exchange transactions take the form of agency arrangements when the NFP has little discretion over the use of the assets that it receives. Your ability to differentiate between these types of transactions is vital to successful preparation of financial statements in the NFP reporting environment.
This CPE course provides real-world examples to help you understand how to distinguish contributions from exchange transactions. You will also learn about basic financial statement presentation and disclosures related to these transactions.
- When you complete this course, you will be able to:
- Differentiate between exchange transactions, contributions and agency transactions
- Identify the indicators useful in distinguishing contributions from exchange transactions
- Recall key concepts regarding exchange transactions
- Grants, awards and sponsorships
- Service fees
- Special fundraising events and campaigns
- Product and merchandise sales
- Membership dues
- Donor-advised funds
- Agency transactions
- Variance power
- Financially interrelated entities