Not-for-profit accounting in a changing world of standard setting: What professors and students need to know

•Reviews the history of nonprofit standard setting in the US.•Discusses the influence of standards for private and small entities on nonprofits.•Explores potential exceptions and modifications to US GAAP for nonprofits.•Examines current and future directions of FASB’s Not-for-Profit Advisory Committee.

Generally, accounting standard setting in the 21st Century promises to be an interesting and increasingly diverse endeavor. This paper discusses the formation of the FASB’s Not-for-Profit Advisory Committee in 2010 and its work to date. I identify the various changes that will likely impact accounting and auditing for not-for-profit entities. Specifically, prospects for changes to current not-for-profit standards are discussed with emphasis on how future changes might follow the patterns outlined for private companies or small and medium-sized entities. New possibilities and implications for educators and curriculum design are introduced.