When it comes to your organization's finances, accuracy isn't optional. It's essential for trust with your donors, your board, and your auditors. That's why Overflow is built to meet key GAAP (Generally Accepted Accounting Principles) requirements right out of the box!
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Accurate FMV & Valuation Timing | Gross vs. Net Revenue Reporting
Restricted Fund Tracking | SOC Compliance | The Bottom Line
Accurate FMV & Valuation Timing
When someone gives a noncash gift, GAAP requires that gift to be recorded at its Fair Market Value (FMV) on the date it was received, not the date it's sold or liquidated.
How Overflow handles this:
- We automatically capture the FMV of stock and crypto gifts at the moment they're received, using reliable, up-to-date pricing data.
- 🔒 That valuation is locked in and tied to the gift record, so your books always reflect what the gift was actually worth when received, regardless of market swings afterward.
This means your financial statements stay accurate, and your team never has to manually track down valuation dates or price history.
Gross vs. Net Revenue Reporting
For cash donations, GAAP requires revenue to be reported at the gross amount (the full donation), with any processing fees recorded separately as an expense. Reporting only the net amount after fees understates your organization's revenue and expenses.
How Overflow handles this:
- 💵 Every donation is recorded at its full gross value.
- Processing fees are tracked separately as their own expense line in deposit batches.
This keeps your revenue and expense reporting clean, transparent, and audit-ready.
Restricted Fund Tracking
Not all gifts are created equal. Some come with donor designations (e.g., "for the building fund"), and GAAP requires those funds to be tracked separately from unrestricted, general-use funds.
How Overflow handles this:
- ❤️ Both cash and noncash gifts can be tagged and tracked by fund designation.
- Your reports clearly separate restricted and unrestricted balances, so you always know exactly how much is available for general use vs. how much is set aside for a specific purpose.
This keeps you from accidentally spending designated funds outside their intended use, and gives you clean records if a donor or auditor ever asks.
Built-In Safeguards: SOC Compliance
On top of GAAP alignment, Overflow is also built with SOC (System and Organization Controls) compliance in mind. In practice, this includes things like:
- 🛡️ Protected Gift Records: For example, NPO Admins cannot modify gift records once they're entered, which preserves the integrity of your giving history.
- Controls designed to prevent unauthorized changes to financial data.
Together, these safeguards keep your gift data accurate and trustworthy, for your team, your board, and anyone else who reviews your books.
The Bottom Line
GAAP provides the accounting structure your organization needs to keep these funds properly separated, so your financial reports always reflect true, accurate fund balances.
✅ Overflow builds that structure into the platform itself, so accurate, compliant bookkeeping happens automatically, not manually.