Bridging the credibility of GAAP: Individual donors and the new accounting standards for nonprofit organizations

A paper analyzes the status of accounting standards for nonprofit entities and examines how individual donors use financial statements prepared under SFAS 116 and 117 in their decision-making process. Results suggest that several modifications are needed and highlight problems that will be encountered in helping donors understand the new statements. The argument is made for making information about service efforts and accomplishments a requirement rather than an option.