This initiative further expands the FASB's outreach to nonpublic entities in its standard- setting process. As with its advisory groups for small and private businesses, the FASB anticipates that the NAC will provide an important discussion forum on critical issues and a key vehicle for hearing perspectives from the not-for-profit sector. The NAC is also intended to help the Board and staff in communicating to the sector about recent and other existing guidance, current and proposed projects, and other issues of importance.

"The establishment of the NAC solidifies the FASB's commitment to ensuring that the views of the not-for-profit sector are heard in the development of standards," said Robert Herz, chairman of the FASB. "We anticipate that enhanced participation from not-for-profits will greatly assist the Board in understanding and appropriately considering the issues and needs of the sector."

Initially, the NAC will be comprised of 12-15 individuals from the not-for-profit sector. The members will represent a wide spectrum of interests, including higher education, healthcare, public charities, and others. The committee will be formed in early 2010 and its first meeting is projected to take place in the middle of 2010. The FASB anticipates the NAC will meet two or three times per year, with meetings made open to the public to the extent possible.

The FASB will begin seeking nominations for committee members in December.