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

5 Ways to Make Your Accounts Payable Process Seamless

Originally Posted: June 6, 2022
  1. Use cloud-based tools. Transition your accounts payable (AP) process to a cloud-based service that interfaces with your accounting system. This can’t be overstated.

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).

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

Considering Accepting Digital Asset Donations? Here is what you need to know.

Originally Posted: June 20, 2022

Many nonprofits are facing the decision of whether to accept digital assets or miss the chance of substantial donations as digital assets become more popular and easier to access.

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

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:

Lessons Learned from Adoption of Topic 606, Revenue Recognition

Originally Posted: January 28, 2022

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09

Nonprofits Should Prepare Now to Accept Cryptocurrency

Originally Posted: May 23, 2022

Over the past year, there has been exponential growth in both the volume of cryptocurrency (crypto) donations to nonprofits and the number of nonprofits accepting such donations, either as cryptocu

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 Classification Tool: Factors to Consider

Originally Posted: February 13, 2022

Revenue classification in compliance with generally accepted accounting principles (GAAP) has changed with the implementation of accounting standards updates (ASU’s).

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):

Split-Interest Agreements

Originally Posted: June 6, 2009

What are "split-interest" ("planned giving") agreements?

Split-interest agreements, also known as planned giving, are contributions that assign the legal rights to certain assets to an NFP

Top Ten Items to Review at Year-End

Originally Posted: April 13, 2022

Your year-end review and audit preparation should include these items among others depending on your organizations form, accounts and transactions.

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