June 17, 1999 | Read Time: 1 minute
How to Comply With the American Institute of Certified Public Accountants’ Statement of Position SOP 98-2: A Guide for Nonprofit Organizations and Their Consultants boils down the requirements of a Statement of Position that took effect for fiscal years beginning after December 15, 1998. That statement, or SOP, deals with the allocation of costs for activities that include a fund-raising component, and establishes standards for such allocations under generally accepted accounting principles, or GAAP. “The new rules are much more precise and strict than the previous SOP, and many non-profits may find it more difficult to qualify for allocation of joint costs than in the past, resulting in higher reported fund raising,” say the guide’s compilers. The booklet defines the relevant accounting terms and spells out how charities may comply with the criteria of the SOP. Publisher: National Federation of Nonprofits, 815 15th Street, N.W., Suite 822, Washington 20005-2201; (202) 628-4380; fax (202) 628-4383; ndc@aol.com; 14 pages; free for NFN members; $3 for others.
