The 501(c)(3) rules are important for nonprofits to understand when reading and interpreting their financial statements. These rules require a nonprofit organization to be recognized as tax exempt under the…

In accounting this means to defer or to delay recognizing certain revenues or expenses on the income statement until a later, more appropriate time. Revenues are deferred to a balance…

For example, New York and California have detailed reporting requirements, while other states might be more relaxed. Small nonprofits might qualify for simpler forms (990-EZ or 990-N), but the basic…