THE IMPACT OF FUND ACCOUNTING FOR NONPROFIT ORGANIZATIONS AND CHARITIES
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- NGN 3000
Abstract: THE IMPACT OF FUND ACCOUNTING FOR NONPROFIT ORGANIZATIONS AND CHARITIES
The objectives of this study are to: (1) analyze the specific accounting requirements for nonprofit organizations and charities; (2) assess the impact of accurate fund accounting on financial transparency and donor trust; and (3) identify the challenges and best practices in managing funds for nonprofits. A survey research design was chosen to gather data from a diverse group of industry professionals. Using Taro Yamane's formula, a sample size of 300 fund accountants and financial managers from Lagos, Nigeria, was determined to be statistically significant. The study includes a case study of a prominent charity in Lagos to illustrate practical implications. A reliability coefficient score of 0.88 confirms the reliability of the survey instrument. Findings reveal that precise accounting practices are crucial for maintaining financial transparency, ensuring compliance with donor restrictions, and enhancing the credibility of nonprofit organizations. Recommendations include adopting specialized accounting software for nonprofits, enhancing training programs for fund accountants, and implementing robust internal controls to ensure the integrity of financial reporting.
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