Accounting procedures of nonprofit and philanthropic institutions are currently undergoing intensive scrutiny, which is certain to have an impact on the financial reporting and internal operations of historical societies. Underlying this scrutiny is the basic theme that the general public is entitled to informative, understandable disclosure of the uses of the money and resources that are made available to nonprofit institutions through tax exemption, grants, and gifts. As a consequence, two types of trends are developing: (1) financial reporting trends, which will require changes in the presentation of data in published financial statements, and (2) accounting trends, which will require the recording of certain financial data. To provide nonaccountants with a foundation for understanding these trends, this leaflet begins with some basic accounting concepts, followed by a discussion of the trends.