Even though the generally accepted accounting principles (GAAP) framework is formally and officially recognized by the accounting profession, use of the GAAP framework for external financial reporting is not generally a requirement of the law outside the context of regulated and publicly traded companies. However, the use of GAAP for external financial reporting purposes may be required as a contractual or legal condition for churches and other nonprofit organizations in certain circumstances. For example, a bank or other lender may require a church to apply the GAAP framework to financial statements submitted to the lender on an annual basis. Similarly, a government agency or other grant-funding organization may require a church to submit GAAP-basis financial statements as a condition of receiving a grant. Regardless of whether such a contractual or legal condition applies, a church may still voluntarily choose to use the GAAP framework for its external financial reporting.