New Liquidity Disclosures for Not-for-Profits

While the disclosure requirements may seem a bit daunting, NFPs should consider this an opportunity to share with their donors, board members, creditors, and other stakeholders their strategy for managing financial resources.

The ASU provides a few example disclosures but, as with everything in the NFP sector, one size does not fit all. With that in mind, we have created several example disclosures for a variety of NFP types. These disclosures take many forms depending on the type of NFP, the relative liquidity of the organization’s resources, donor-imposed restrictions on those resources, internal board designations on resources, and so on. These examples will help organizations consider how to adjust their liquidity disclosures to enhance transparency.