What makes fund accounting unique to nonprofits? In a word — accountability. Nonprofits and government agencies must track all income to a specific purpose. It is a system of grouping unrestricted and restricted funds.
New FASB rules for nonprofits are scheduled to take effect in December 2017. Is your nonprofit ready?
When preparing your nonprofit IRS Form 990, key reporting elements must be included for proper preparation.
All nonprofit organizations are required to file IRS Form 990. Filing the Nonprofit Form 990 ensures that charitable organizations are accountable to funding sources.
Nonprofit financial statements must show all incoming and outgoing funding to demonstrate accountability and compliance.
Nonprofit audit standards make it management’s responsibility, not the auditor, to establish and maintain proper internal controls.
Nonprofit revenue sustainability is a challenge that most organizations must address: managing financial viability in an evolving funding landscape, contending with “competing” nonprofit organizations while establishing collaborative partnerships, demonstrating value and accountability to funders and supporters, and maximizing the contribution of leadership within the community.
The proper setup up of the chart of accounts for nonprofits is the critical first step in getting started with your nonprofit fund accounting system.
Common nonprofit fund accounting mistakes involve the practice of making separate funds for each program activity, or grant received by your organization.
Fund Accounting is unique to nonprofits and governmental agencies. Understanding funds and the proper implementation of fund accounting in your organization will help make your nonprofit more accountable to your funding sources.