What type of accounting standards does FASB focus on for nonprofit organizations?

FASB, or the Financial Accounting Standards Board, focuses on developing financial accounting standards that guide how nonprofit organizations prepare and present their financial statements. These standards are known as Generally Accepted Accounting Principles (GAAP) in the United States. Nonprofit organizations must adhere to these principles to ensure transparency, consistency, and comparability in financial reporting, which helps stakeholders, including donors, grantors, and the public, to understand their financial health and operational effectiveness.

In particular, FASB has established specific requirements for nonprofit organizations, addressing issues unique to the sector, such as revenue recognition from contributions and the reporting of functional expenses. By following FASB's financial accounting standards, nonprofits can provide a clear and accurate picture of their financial position, enhancing accountability and trust with their constituents.