Cash basis in non profit organization

[Judith]

hello. I'd like to know in wich condition(s) can we choose to prepare the financial statements off an organization under cash Basis. This organization prepares his 990 under cash basis. Thank you

 

[DTA93433]

Choosing to use a cash basis vs. an accrual basis for your non-profit business is merely selecting an accounting method (See Pub 538 - Accounting Periods & Methods.) The only "condition" (so to speak) in using the cash basis method is that this method (according to the IRS) "clearly reflects income and expenses".