Wednesday, June 4, 2014

Accounting for NGOs

Non-profit accounting, is a surprisingly complicated work. There are several points
for this: (i) organised charity is a relatively recent phenomenon; (ii) it is subject to
pressures from various institutions, especially the donor agencies(iii) professional
accountants, have paid relatively little attention to non-profit accounting; and, finally, (iv)
its financial management is focussed on spending money, rather than making it!
What kind of accounting is right for non-profits? This may vary from one country
to another, Accounting practices developed in one region, thus, may not suit
another. Yet, there must be a common meeting ground, as organized charity is largely
an international endeavor. A key issue is, thus, to find solutions which are valid for a
region, yet can be interfaced with requirements of international charities,
It is commonly known today that accountability is one of the most significant
issues in non-profit  Org.. Accountability is commonly  linked with public and Government
perceptions of the non-profit sector, and in turn affects the credibility and capacity of
the sector to make a difference.

No comments:

Post a Comment