Nonprofit books answer to more people than most: donors, funders, your board, your auditor and the IRS. We keep restricted and unrestricted money apart, track every grant, reconcile your donation platforms and give your board clear financial statements every month, ready for your audit and for the CPA who prepares your Form 990.
Nonprofit bookkeeping and accounting services we handle
- Fund accounting by program, grant and restriction, using classes or tags in your accounting software
- Net assets with and without donor restrictions tracked, and released when restrictions are met
- Grant budgets compared with actual spending, with the reports your funders ask for
- Reimbursable grant claims and drawdowns prepared from reconciled numbers
- Donation platforms such as Givebutter reconciled to bank deposits, with gross gifts, fees and refunds recorded separately
- In-kind donations recorded and valued separately from cash gifts
- A statement of functional expenses that splits costs between programs, management and general, and fundraising
- Board-ready monthly or quarterly financial statements
- Year-end schedules for your auditor and for the CPA who prepares your Form 990
Where nonprofit books usually go wrong
Restricted money spent as general funds
Without restriction tracking, a grant for one program quietly pays another program’s bills, and it surfaces at audit.
Donations booked net of fees
Recording only the platform payout hides your real gifts and fundraising costs, and makes donor records hard to match.
Functional expenses guessed at year end
Splitting costs once a year from memory is slow and hard to defend. We allocate as we go, every month.
Ready for your audit and your Form 990
We don’t prepare Form 990 or perform audits. We make both faster and less expensive: reconciled books, schedules of restricted funds and grants, functional expense detail and a clean trial balance for your auditor and your 990 preparer.
If your organization spends $1,000,000 or more in federal awards in a fiscal year that began on or after October 1, 2024, it generally needs a Single Audit. We track federal awards separately from the start, so the schedule your auditor needs is ready.
Software we work in
We work in QuickBooks Online, Xero and other accounting software, and reconcile donation and fundraising platforms such as Givebutter, so every gift, fee and payout ties back to your books.
Frequently asked questions
What is fund accounting for nonprofits?
Fund accounting tracks money by its purpose: which program, grant or donor restriction it belongs to. In practice we set up classes, tags or funds in your accounting software so every gift and expense is tied to its purpose, and your reports show each program and grant on its own.
What is the difference between restricted and unrestricted funds?
Under current US accounting standards, nonprofits report net assets in two classes: with donor restrictions and without donor restrictions. Restricted gifts can only be spent as the donor specified, such as on one program or after a certain date. When you meet the restriction, the money is released to unrestricted net assets.
Do you prepare Form 990?
No. We keep your books 990-ready and give the CPA who files it the schedules they need. As a guide, organizations with gross receipts normally of $50,000 or less can file the 990-N e-Postcard, those under $200,000 in gross receipts and under $500,000 in total assets can file Form 990-EZ, and larger organizations file Form 990. It is due by the 15th day of the 5th month after your year end, with a 6-month extension available on Form 8868.
What happens if a nonprofit doesn’t file its 990?
An organization that fails to file a required 990, 990-EZ or 990-N for three consecutive years automatically loses its tax-exempt status. That is why we track your filing deadline along with the books.
Do you work with Givebutter?
Yes. We reconcile Givebutter payouts to your bank deposits and record gross donations, processing fees, refunds and donor tips correctly, so your revenue and fundraising costs are accurate and match your donor records.
How do you handle in-kind donations?
Donated goods, services and space are recorded separately from cash gifts and valued with a documented method. Current standards require contributed nonfinancial assets to be shown as their own line in your statement of activities, with disclosures about how they were used and valued.
What is a statement of functional expenses?
It shows your expenses two ways at once: by nature, such as salaries, rent and supplies, and by function, meaning programs, management and general, and fundraising. All nonprofits following US GAAP must present this analysis, and Form 990 filers report functional expenses too. We allocate shared costs every month using a consistent, documented method.
When does a nonprofit need a Single Audit?
Generally when it spends $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024. For earlier fiscal years the threshold was $750,000. Federal money passed through a state or another organization counts too.
How much does nonprofit bookkeeping cost?
Our monthly bookkeeping starts at $599 and depends on how many programs and grants you track and your transaction volume. See our pricing for sample packages, or tell us about your organization for a fixed quote.
Give your board numbers it can trust
Tell us about your programs, grants and donation platforms, and we’ll recommend the right level of support.