Once your nonprofit organization gets approved by the IRS for a tax exemption, you must maintain tax exemption. You must know what actions or activities could jeopardize your tax-exempt status.
There is a new emphasis and an upcoming required change in how your NFP financials will present and disclose gifts-in-kind. Accounting Standard ASU No. 2020-07 has mandated this change. It will be effective for annual periods beginning after June 15, 2021. This Accounting Standard improves transparency for gift-in-kind transactions by requiring the following: