Nonprofits & Associations
Fund accounting keeps restricted gifts separate from operating funds. We track grants, prepare board reports, and support your 990 filing.
Every Dollar Accountable
Running a nonprofit means managing money that belongs to someone else. Donors gave because they believe in your mission. Grant funders expect their award to be spent exactly as proposed. Board members need to show stakeholders that funds are handled properly. This is a higher standard than a typical business where the owner decides how money gets spent.
Fund accounting is how nonprofits meet this standard. It separates restricted donations from general operating money. When someone gives $10,000 specifically for your scholarship program, that money cannot quietly drift into payroll during a tight month. We set up and maintain the systems that keep these funds visibly separate.
Who This Covers
Who This Covers
Churches and faith-based organizations, local charities, trade associations, PTAs, youth sports clubs, arts nonprofits, and similar tax-exempt organizations. Any group that answers to donors, members, or funders and needs clean financial records to prove responsible stewardship.
The Complexity
The Complexity
Multiple revenue streams with different restrictions. Grants tied to specific programs. Membership dues covering operations. Event revenue that might be unrestricted. Each source has different rules for how it can be spent, and the accounting has to reflect that clearly.
What We Handle
We configure QuickBooks for nonprofit fund accounting so restricted and unrestricted money stays clearly separated. Grant funds get their own tracking so you can report spending against the approved budget. Every donation and expense gets coded to the right fund, building the audit trail your stakeholders expect.
Beyond the daily transaction work, we prepare financial reports formatted for board meetings. When grant reporting deadlines arrive, the numbers are already organized by program. And when it comes time to prepare your 990, we make sure your records are clean and complete so your CPA can file without scrambling.
Fund Setup and Tracking
Fund Setup and Tracking
QuickBooks configured with proper fund accounting structure. Restricted donations tracked separately from general operations. Grant spending monitored against approved budgets. Monthly reports showing fund balances and program expenses in a format your board can actually understand.
Compliance Support
Compliance Support
Records organized and maintained throughout the year for smooth 990 preparation. Grant documentation kept current for funder reporting requirements. Donor acknowledgment records ready when your development staff needs them. The paperwork stays in order instead of piling up.
What Goes Wrong
The most common problem is funds getting mixed together. A restricted donation lands in the general checking account and gradually gets absorbed into operating expenses. Nobody notices until the grant funder asks for a spending report and there is nothing to show them. Or a board member asks about the capital campaign balance and the executive director has to admit they are not sure.
The other pattern we see is the annual 990 scramble. The filing deadline approaches and suddenly everyone is hunting for receipts, board minutes, program expense totals, and donor lists. Without books maintained consistently throughout the year, the 990 becomes a stressful reconstruction project instead of a straightforward filing based on clean records.
Funds Get Commingled
Funds Get Commingled
A restricted gift meant for the building fund gets spent on payroll during a tight month. The intention was to pay it back later, but later never comes. When the auditor or funder asks questions, untangling the mess takes far more time and money than proper tracking would have required from the start.
Reports Fall Behind
Reports Fall Behind
Board members ask about program spending and get vague answers. Grant reports require pulling information from spreadsheets, bank statements, and memory. The executive director spends evenings and weekends doing accounting work that should take an hour if the books were properly maintained.
What Changes
Board meetings happen with current, accurate financial reports ready to present. You can show exactly how much sits in each fund, what was spent on programs versus administration this quarter, and whether the organization is tracking against the annual budget. Questions from board members get answered with confidence instead of promises to follow up later.
Grant reporting becomes straightforward because the numbers are already tracked by fund and program. When a funder asks how their money was spent, the answer is documented and ready. Your 990 preparation happens without a crisis because the underlying records were maintained cleanly all year. You spend your energy on the mission instead of fixing the books.
Board Confidence
Board Confidence
Monthly financials show fund balances, program spending, and budget variance in clear terms. Board members trust the numbers because the reports are consistent and timely. Financial discussions at meetings focus on strategy and planning instead of questioning whether the figures are accurate.
Funder Trust
Funder Trust
Grant reports pull directly from accurate records maintained throughout the grant period. Restricted funds are provably intact and properly spent. When major donors ask where their contribution went, you have the documentation to show them. That transparency builds the trust that leads to continued support.
The Merrimack Valley's Trusted Accounting Partner
The Next Step:
A 15-Minute Call
Tell us about your business and what you're dealing with. We'll listen, ask a few questions, and give you a straightforward quote.