Accounting and offside have this in common: They are obviously very important to many people, but not everyone can explain in detail what they’re all about. Rules are necessary for the game to run smoothly, but beyond that, most of us don’t give them much thought.

So why do we think accounting is important for nonprofit organizations? And why do we insist on having a separate standard for nonprofit organizations?

Accounting primarily provides control over finances. Audits for management, owners, and customers. Management can make sound decisions based on accurate assumptions about the company’s financial situation. Owners know how much dividend they can expect, or whether they need to plan on putting more money into the company. Customers can be confident that the company will still be in business in three years, that they can actually expect to receive the product or service they are paying for, and that they can file a complaint if something goes wrong.

But as a donor—or as a young idealist who just wants to help—you probably don’t need to worry about the financial details, do you? I guess the most important thing is that you give or do something, right?

There is no doubt that a spirit of community service and the joy of giving are important. It can help create a warmer and more prosperous society in ways that go beyond the purely economic. At the same time, we believe it’s important to be able to see where the money goes and what you actually get in return for your donation. How much does the fundraiser take home? Are salaries being paid at disproportionately high levels? Where does the money actually come from? Does the organization handle fundraising on its own, or do professionals take care of that aspect?

We at Charity Monitoring Norway believe that the least you can expect when someone goes public and asks for money is a breakdown of how much is raised and what that money is actually used for.

Why a separate standard? Can’t I just create a regular set of financial statements using a template I found online?

As mentioned above, general accounting addresses the most important issues for a business that aims to make a profit. In a nonprofit organization, making money is not a goal in itself; rather, the goal is to work toward the organization’s mission. A standard financial statement provides no information on this. Therefore, we require that our accredited organizations use the NRS(f) Good Accounting Standard for Nonprofit Organizations.

Furthermore, this is the only standard that addresses “Funds Raised” as a source of revenue and provides guidance on how this should be accounted for. We believe that, as a donor, you deserve to know how much the telemarketer who calls you—or the person who stops you on the street—charges for their services.

Charity Monitoring Norway wants you to be able to donate safely to the cause you wish to support. Remember to give with both your head and your heart, and if you’re unsure, check our list of approved organizations.