She starts off her blog post with defining the abbreviation GAAP (which is great, because I had no clue!) as generally accepted accounting practices. Carrie breaks down that there are three categories where the differences in financial statements and 990s occur. They are:
- unrealized gains and losses
- special events
- in-kind contributions
In a very condensed version, unrealized gains and losses are recorded in different places on the financial statement as compared to the Form 990. For special events, there are various ways the information can be recorded (see Carrie’s post for more details). As for in-kind, the fair market value must be recorded in the financial statements and general value recorded under the reconciliation of Form 990.
To read more and other details, check out Carrie post here.