[Verse 1]
Not-for-profit organizations stand apart from the rest
No shareholders or profit motive, serving public interest
Their mission drives the operation, outcomes over gain
Part Three of the handbook guides us through their domain
[Chorus]
Part Three NFP, special rules apply
Resource restrictions, fund accounting why
Contributions, grants, and pledges too
Accountability that's transparent and true
Part Three NFP, framework we must know
Show the stewardship, let the story flow
[Verse 2]
Revenue recognition differs when donations come your way
Restricted funds have strings attached, can't spend them right away
Unrestricted funds flow freely for the mission at hand
Net assets tell a different tale than equity we've planned
[Chorus]
Part Three NFP, special rules apply
Resource restrictions, fund accounting why
Contributions, grants, and pledges too
Accountability that's transparent and true
Part Three NFP, framework we must know
Show the stewardship, let the story flow
[Bridge]
Statement of operations shows the changes in the year
Statement of position tells us what resources are here
Cash flows and net assets, four statements we prepare
Donors, members, government need info that's fair
[Verse 3]
Endowment funds preserved forever, only income spent
Capital assets serve the mission, depreciation bent
Performance indicators matter, efficiency and more
Social impact measurement knocking at the door
[Chorus]
Part Three NFP, special rules apply
Resource restrictions, fund accounting why
Contributions, grants, and pledges too
Accountability that's transparent and true
Part Three NFP, framework we must know
Show the stewardship, let the story flow
[Outro]
From charities to foundations, clubs and hospitals too
Part Three guides the way we account for what they do
Public trust and transparency, the cornerstone we build
NFP accounting mastery, our professional skill