What Nonprofits Should Know About Functional Expense Reporting

April 2024 Nonprofit organizations rely on donors and grants to carry out their missions. Transparency and accountability are essential to building trust with current donors, potential donors and grantmaking organizations. Functional expense reporting enables nonprofits to demonstrate that they are using their resources responsibly. In addition to being a best practice and a feature of Generally Accepted Accounting Principles (GAAP) for nonprofits, functional expense reporting is mandatory under federal tax laws. Read on to learn more about functional expense reporting and how nonprofits may implement their own systems. View the full article here.