When it comes to reporting expenses, the biggest difference between nonprofit organizations and for-profit businesses is that nonprofits use functional accounting to classify expenses.
The nonprofit sector is unlike any other business, it thrives on people donating their money without expecting a tangible product or service in return. What they do expect from a nonprofit is that they handle the money responsibly and that the money is used for its designated purpose.
When it comes to nonprofit accounting, ignorance can have very serious consequences.
Can knowing accounting grow your nonprofit and lead to nonprofit sustainability? If you don’t understand accounting principles, your nonprofit may struggle to fulfill your mission and achieve your goals. Why is understanding the principles of accounting so fundamentally important?
Nonprofit organizations now have a wealth of choices when choosing cloud-based nonprofit accounting solutions.
Find out what SaaS is and why it makes sense for nonprofits.