Rulemaker Aims for More Transparency in Charity Gift Accounting

Charities would have to offer more details about physical gifts they receive from donors and how they measure them under a proposal U.S. accounting rulemakers plan to release by year end.

The Financial Accounting Standards Board on Nov. 6 unanimously agreed to draft a plan to force more transparency around the reporting of non-financial gifts—everything from cans of soup to cancer drugs. Their action follows a failed attempt by California lawmakers to diverge from national accounting rules in order to curb fraud involving charitable donations of drugs and medical devices.

FASB’s planned change would require charities to record ...