Resources
GAAP Policy Library
Plain-language, nonprofit-specific accounting policies drawn from FASB ASC 958. Adopting a sample marks it as Adopted in the active intake register.
Active client
Every draft below is written for this organization from the profile you complete. Click Generate board-ready draft to see the full ten-section policy, and Adopt this language to mark it Adopted in your Milestone 4 register. You will still need to upload the final board-approved document in the intake portal.
Organization profile
Every generated policy is written from these answers. Anything left blank appears as a [NEEDS INPUT] marker in the draft.
Basis of accounting & fiscal year
ASC 958-205 · Board Treasurer · Executive Director · Finance Partner
Purpose
State whether the organization uses the accrual basis of accounting under U.S. GAAP and define the fiscal year-end.
What this policy must address
Accrual basis, consistency with prior periods, reporting entity, fiscal year-end, and the monthly close calendar.
Contribution revenue recognition
ASC 958-605 / ASU 2018-08 · Executive Director · Development Director · Finance Partner
Purpose
Define conditional vs. unconditional contributions and when revenue is recognized.
What this policy must address
Donor intent, absence of reciprocal transfer, conditions vs. restrictions, measurable barrier, and refundability.
Exchange transactions & grant vs. contribution
ASC 606 · Executive Director · Development Director · Finance Partner
Purpose
Distinguish reciprocal (exchange) transactions from nonreciprocal (contribution) transactions.
What this policy must address
Quid pro quo analysis, government grants as exchange transactions, and classification of membership dues or sponsorships.
Donor restrictions & release of restrictions
ASU 2016-14 · Executive Director · Finance Partner
Purpose
Classify net assets and expenses by donor-imposed restriction and describe how restrictions are released.
What this policy must address
Without vs. with donor restrictions, purpose and time restrictions, direct and indirect release, and net-asset presentation.
Gifts-in-kind valuation, recognition & disclosure
ASC 958-605 / ASU 2020-07 · Executive Director · Finance Partner · Program Director
Purpose
State how donated goods and services are valued, recognized and disclosed.
What this policy must address
Fair value at exit price, specialized markets, conditional GIK, use of third-party pricing, services requiring specialized skills, and disclosure of valuation methodology.
Functional expense allocation methodology
ASC 958-720 · Executive Director · Finance Partner · Department Heads
Purpose
Describe how expenses are allocated among program, management & general, and fundraising.
What this policy must address
Allocation base (headcount, time studies, square footage), documentation requirement, and review cadence.
Liquidity & availability of resources
ASC 958-210-50 · Board Treasurer · Finance Partner
Purpose
Disclose how the organization manages its liquid resources and board-designated reserves.
What this policy must address
Nature and amount of donor restrictions, board-designated net assets, operating reserve policy, and liquidity disclosure.
Capitalization threshold & depreciation
ASC 360 · Finance Partner · Executive Director
Purpose
Establish the dollar threshold for capitalizing fixed assets and the depreciation policy.
What this policy must address
Capitalization threshold, asset categories, useful lives, method of depreciation, and disposal/write-off process.
Investments, endowments & UPMIFA spending
ASC 958-205 / MA UPMIFA · Board Treasurer · Finance Committee · Executive Director
Purpose
State investment valuation, reporting and endowment spending authorization.
What this policy must address
Fair value measurement, donor-restricted endowment, board-designated endowment, spending-rate policy, and underwater endowment disclosure.
Leases
ASC 842 · Finance Partner · Executive Director
Purpose
Describe the policy for identifying, classifying and measuring leases.
What this policy must address
Lease recognition threshold, finance vs. operating lease, ROU assets and lease liabilities, and short-term lease exemption.
Allowance for uncollectible promises to give
ASC 958-310 · Finance Partner · Development Director
Purpose
State the methodology for estimating uncollectible receivables and pledges.
What this policy must address
Aging analysis, historical write-off rates, donor-specific factors, and reconciliation cadence.
Chart of accounts & month-end close
Internal control · Executive Director · Finance Partner
Purpose
Define the chart of accounts, coding authority and month-end close responsibilities.
What this policy must address
Approval of new accounts, segregation of duties, cutoff procedures, reconciliations, and review sign-off.
Records retention & document destruction
IRS / MA · Executive Director · Operations Manager · Finance Partner
Purpose
Set minimum retention periods and secure destruction procedures for financial records.
What this policy must address
Permanent records, 7-year retention, electronic backup, destruction authorization, and Form 990 support.