Definition:
A 12-month period in which an organization plans to use its funds.
This period may be a calendar year but can be any 12-month period. A fiscal year accounting period should coincide with the operating cycle of the organization. Common fiscal years end at the end of June or December.
When a nonprofit organization files an IRS Form 990, it is required to define its accounting period.
Examples:
The organization's fiscal year ends on December 31st.
