Many not-for-profits join forces to better serve their clients and cut costs. But even a simple collaborative arrangement can involve complex financial reporting obligations. Costs incurred and revenues generated from transactions with third parties should be reported, on a gross basis on the statement of activities, by the nonprofit that’s considered the “principal” for that arrangement. Payments should be presented according to their nature and certain disclosures should be made by participants. Contact us for more information about reporting joint activities.