From Joanne Fritz,
Your Guide to Nonprofit Charitable Orgs.
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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 on July 31st or December 31st.

When an organization files an RS Form 990, it is required to define its accounting period.

Examples: The organization's fiscal year ends on December 31st.