Nonprofit Accounting Basics

Accounting and Bookkeeping

5 Guidelines for Successful Grants Management

Originally Posted: March 8, 2021

A good grants management process can take some time to develop, but the effort can be worth it.  In this article, you’ll learn some tips and guidelines to help you improve your grants manageme

Accounting for Fundraising Expenses

Originally Posted: June 3, 2009

Generally accepted accounting principles (GAAP), in Statement of Financial Accounting Standards No.

Accounting for Government Grants: Sample Journal Entries

Originally Posted: June 6, 2009

Following are some examples of journal entries for accounting for government grants.

Proper Accounting for Contributions:

Accounting for Special Events

Originally Posted: May 21, 2010

Many special events, such as dinners, galas, auctions, and walk-a-thons, are organized to raise contributions to support the organization’s activities.

Agency Transactions

Originally Posted: June 6, 2009

What are agency transactions?

Agency transactions occur when one NFP (the agent) raises contributions for another NFP (the recipient).

Be Careful What You Ask For

Originally Posted: April 8, 2015

This article illustrates how accounting decisions or judgments can affect taxes - on an organization or on its donors, and vice versa.

Budget for Government Grants

Originally Posted: June 6, 2009

When you receive a grant from a governmental agency, it will typically include a program budget.

Charity Auctions: Reporting and Tax Rules

Originally Posted: April 28, 2015

While neither charity auctions nor the various rules governing them are new, we receive numerous questions about them and observe many examples of inadequate auction procedures by both large and sm

Corporate Sponsorships: Do Them Right and Avoid Tax

Originally Posted: June 4, 2012

Exempt organizations, both large and small, are relying more and more on a variety of corporate sponsorships to provide much-needed support for events and programs.

Deferred Revenue

Originally Posted: February 13, 2018

Do Your Part for Donors: IRS Substantiation Rules Apply to Contributors

Originally Posted: June 2, 2015

Tax-filing season may have just ended but it’s always a good time to make sure that your organization is following the IRS donation “substantiation rules” so that your benefactors will have the pro

Donor Imposed Restrictions

Originally Posted: June 6, 2009

What are "donor-imposed" restrictions?

FASB116 focuses on the concept of restricted revenue.

Exchange Transactions

Originally Posted: June 6, 2009

Factors that may indicate an exchange transaction:

Often it is difficult to distinguish between a contribution and an exchange transaction, the following factors are indicative of an exchan

Get Smart About Art Donations

Originally Posted: December 27, 2016

Non-cash Contributions

How to Run a Successful Capital Campaign

Originally Posted: July 16, 2012

To launch a capital campaign is a major decision for any nonprofit. Capital campaigns are not for all organizations. Those who decide to start one must ensure:

Improving Communication Between the Accounting and Development Department

Originally Posted: April 9, 2013

In this article, we will take a closer look at ways to improve communication specifically between the accounting and development departments.

IRS Proposes Implementing a Donee Report Form

Originally Posted: November 17, 2015

The Omnibus Budget Reconciliation Act of 1993 (or “OBRA93”) contained two major provisions affecting charities and their donors by introducing the "substantiation" and "disclosure" requirements.

Joint Cost Allocation

Originally Posted: June 3, 2009

Joint Costs of Multi-purpose Activities. This is the subject of AICPA Statement of Position No. 98-2.

Pledges Receivable: Explaining the Basics to Your Development Department

Originally Posted: March 10, 2015

Pledges receivable can be a point of conflict between the accounting department and the development or fundraising team.

Prepaid Expenses

Originally Posted: July 12, 2017

Raffles -- The Right Way

Originally Posted: August 27, 2012

Raffles are gaining popularity for nonprofit fundraising. Often combined with a gala or other big event, raffles are accessible and fun.

Revenue Recognition Standard: Implementation Considerations and Disclosure Requirements

Originally Posted: March 22, 2016

On May 28, 2014, the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) issued substantially converged final standards on revenue recognition.

Sample Amortization Schedule

Originally Posted: June 12, 2009

Please find below a a sample amortization schedule.

Sample Journal Entries for Government Grants

Originally Posted: June 6, 2009

The following are the entries necessary for cost-reimbursable government grant (assuming the grant is determined to be an exchange transaction):

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