Nonprofit Accounting Basics

Recent Articles

What Board committees are recommended for a newly formed nonprofit?

Originally Posted: October 31, 2022

Question: I will be forming a new nonprofit organization soon and I am in the process of recruiting the initial Board of Directors and drafting governing documents.

Nonprofit Funding Sources (Donor Types)

Originally Posted: October 31, 2022

Funding comes from a variety of sources for nonprofits. Every nonprofit has a niche and a funding strategy to match.

Accounting Made Easy: 5 Steps to Fast, Easy, and Accurate Bank Reconciliations

Originally Posted: October 17, 2022

One of the more fundamental and important processes in the monthly close is the reconciliation of bank accounts.

Protocol for Issues Involving Prior Period Checks

Originally Posted: October 17, 2022

Situation:  

A check from a Prior Year (or prior period) has not cleared the cash account (lost, destroyed, etc.).

Solution:

What You Need to Know About the 2022 Compliance Supplement

Originally Posted: October 3, 2022

All non-federal government agencies and nonprofit organizations that expend $750,000 or more in direct federal awards and federal awards passed through state agencies in a given fiscal year are req

Budgeting and Financial Planning

Originally Posted: September 1, 2022

Effective financial management is an ongoing process that features a cycle of good management habits.

Public Support Tests: How a Public Charity is Defined Under Sec. 509(a)(2)

Originally Posted: September 1, 2022

The IRS has four categories under Sec. 509 that allow an organization to be a public charity, but the two most common are 509(a)(1) and 509(a)(2).

Payroll

Originally Posted: September 1, 2022

There are many payroll services that will process the regular payroll, make direct deposits, prepare quarterly and annual tax filings and remit taxes due for a very reasonable fee.

Writing Checks

Originally Posted: September 1, 2022

Having the appropriate number of people involved in processing transactions, the less likely it is that a problem will occur.

Other Cash

Originally Posted: September 1, 2022

While writing checks and making deposits fall under the category of “cash,” there are other activities involving cash.

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