I’d start with resources from the Nonprofit Risk Management Center and the AICPA, as both offer useful guidance around internal controls and risk management. You might also look at sample policies from established nonprofits and adapt them to your own operations. The key is keeping controls practical enough that staff will actually follow them.

I think AI can be genuinely useful for reducing repetitive work, from drafting communications to summarising information and organising data. The bigger challenge is making sure efficiency doesn’t come at the expense of privacy, accuracy or human judgement. I’d favour clear internal guidelines and careful experimentation rather than rushing in.… Read more

I’ve found that the best CRM is usually the one your team will actually use consistently. For me, good reporting, sensible donor segmentation, integrations, and an API that plays nicely with other tools are crucial. Every platform has quirks, so I’d suggest testing real workflows before committing. The demos can be rather charming!

I’d be cautious about applying a blanket seven-year rule to everything. Retention requirements can differ depending on the record, tax rules, employment matters, safeguarding, and jurisdiction. I’d create a simple retention schedule with counsel, then securely get rid off what genuinely isn’t required.

One thing I’d add is that ratios are most useful when you track them over time, rather than treating a single number as a verdict on the organisation. For example, LUNA can tell you quite a bit about short-term financial flexibility. I’d also be cautious about judging overhead without considering what the organisation actually delivers.

I’d say yes, you can fundraise specifically for an event, but the wording of the appeal matters. If donors are told their gifts must fund that event, I’d treat those amounts as donor restricted and track them separately. If it’s simply the organisation’s chosen use, they’re generally unrestricted.

If the grant agreement only restricts how the money is spent, I wouldn’t automatically treat that as a condition preventing recognition. I’d generally recognise the award when you’re entitled to it, while recording restrictions separately. If future-year funding depends on meeting specific requirements, though, that portion may need diffe… Read more

I’d focus less on finding a generic bookkeeping firm and more on someone who understands nonprofit fund accounting and QuickBooks Online. Your chart of accounts, classes, and projects should be designed around how you report grants and programmes. I’d also ask your REDF cohort for referrals; they’re likely to have encountered the same problem.

While it’s not an accounting firm, GrantDeskHQ.com can definitely help you with post-award reporting and financial management – they’ve got an AI-powered solution that automates a lot of the process.

In my experience, if the grant specifies how funds can be allocated to particular staff or expenses, those restrictions would generally be treated as grant conditions. It’s also worth checking the grant agreement and your organization’s accounting policy to confirm the correct treatment.

In my view, the release should generally follow the purpose of the donor restriction. Amounts can be released as eligible construction and outfitting costs are incurred rather than waiting until the building is placed in service. The key FASB guidance is ASC 958-205-45-9. This addresses the release of donor-imposed restrictions when the specified…

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Congratulations on completing the REDF Accelerator! It’s a great way to strengthen your QuickBooks Online setup. Project tracking could make grant reporting and financial decision-making much easier. I suggest you look for a nonprofit accounting professional. It should be a professional who understands social enterprises and fund accounting,…

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Donors should look beyond overhead and consider whether a charity has healthy reserves, credibility and stable revenue. This is a lot easier to assess now because nonprofit verification has been automated by tools such as the Nonprofit Check Plus API. This saves the manual stress of paper works. It also makes it easier to assess an…

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For learning Form 990 preparation, I’d start with the IRS instructions and prior completed returns before buying expensive books. There are also several nonprofit accounting courses and practical guides available online. Personally, I find working through an actual 990 alongside the instructions far more useful than simply reading theory.

Property use fees would not normally be treated as donations simply because the property is nonprofit-owned. I’d look at whether the payment is actually rental income, program service revenue, or something else. The Form 990 instructions are worth checking carefully here, as the classification can affect reporting.

I’d look for a nonprofit accountant who understands both QuickBooks Online and social enterprises, rather than simply a general bookkeeper. Your chart of accounts and tracking structure sound like the real issue. REDF alumni could also be a useful source of referrals, since they’re likely dealing with very similar reporting headaches.

I’d lean towards following your consultant’s treatment, but I’d ask them to confirm the pass-through arrangement against the 990 rules. If it must be reported, you can still explain that these funds are restricted/pass through rather than operating revenue. A short note comparing 2022 and 2023 should prevent the numbers causing unnecessary alarm.

That’s a great question. For in-kind donations you receive, record them at fair market value on the date they arrive. For goods, use retail or thrift shop values; for services like legal help, use FMV if you would have paid for them anyway. Just remember to record both revenue and an equal expense. When you donate items or services, record them as… Read more

We took a blended approach to address rising costs. We gave all staff a 5% cost-of-living increase to help with inflation. Then we added a separate 3% merit pool for performance-based adjustments. This helps us keep our team supported while still rewarding strong work. We review salaries quarterly to keep them competitive.

Yes, that could potentially be a condition, but the wording of the grant agreement matters. Under ASC 958-605, specific requirements around qualifying expenses can create a barrier to entitlement, particularly where funds must be returned if those requirements aren’t met.
If it is conditional, I’d generally expect revenue to be recognised as the… Read more

I’d lean towards recording the organisation’s share as revenue and the winner’s share as a liability, rather than treating the entire pot as revenue and the payout as an expense. The key is whether the organisation has control of the full proceeds or is holding part for the winner. I’d confirm the treatment with your accountant, particu… Read more

I think the biggest challenge with windfall gifts is resisting the temptation to expand too quickly. A realistic multi-year budget and strong financial planning can help. The goal should be to use the gift to build capacity and impact that lasts beyond the funding period.

I agree that sharing real experiences from the nonprofit sector is valuable. This is because policymakers need to understand how these decisions affect organizations and the communities they serve. Staying connected with the National Council of Nonprofits and state-level associations can give nonprofits a stronger voice while helping them prepare…

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I’d lean towards releasing the restriction as the qualifying construction costs are incurred, rather than waiting until the building is placed in service. The donor’s wording is important here, so I’d review the gift agreement carefully. I’d also confirm the treatment with your accountant and check the relevant FASB guidance, particularly ASC 958-205.

I think staying connected and informed is especially important when funding policies are changing. Nonprofits sharing their experiences with organisations like NCN can help ensure policy discussions reflect real challenges on the ground. It also gives organisations a useful way to prepare for further developments.

I don’t think a 990 alone tells the whole story. It can highlight useful financial and governance information, but context matters when interpreting unusual figures. Looking at the organisation’s wider operations and recent history can provide a much clearer picture.

I think overhead percentage is only one small part of the picture. Reserves, revenue diversity, debt, cash flow and transparency can tell donors much more about financial resilience. I’d also look at whether the numbers make sense alongside the organisation’s mission and activities.

I think Charity Navigator and Candid can be useful starting points for reviewing nonprofit finances. Looking beyond programme ratios is important, particularly when considering reserves, revenue stability and liabilities. I’d also compare several years of financial information rather than relying on one figure.

I’d add a stronger focus on cash flow and unrestricted reserves. A nonprofit can look healthy on paper while still facing short-term pressure. Regularly reviewing these alongside the existing financial steps could give boards a more complete picture.

I’d be hesitant to attach the charity profile directly to your personal Venmo, even though Venmo allows charity profiles to connect to a personal account. It may be cleaner to use a dedicated organisational setup. I’d also confirm the ownership arrangements with Venmo first.

I think the strategic plan and operating budget should be closely connected. It helps to identify the additional costs created by new priorities before they are approved. That way, the budget reflects where the organisation actually wants to go.

What should donors look at when evaluating a charity’s financial health beyond simply checking its overhead percentage? How important are factors such as financial reserves, revenue stability, program spending, debt, and transparency when deciding whether a nonprofit is financially trustworthy? I would be interested to hear what financial…

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I too am curious how others handle post-award reporting across finance, grants, and programme teams. A short survey could be useful for gathering practical experiences. It would also be interesting to hear what tools or processes organisations currently use.

I’d probably use the actual manufacturing cost rather than the retail price. The retail price represents what the books might sell for, while the manufacturing cost reflects what the organisation actually spent. I’d still confirm the treatment with your accountant.

I’d be cautious about assuming the fee itself is deductible. My understanding is that the treatment can depend on how the donor’s payment is structured and recorded. I’d ask your accountant to confirm the specific arrangement before relying on it.

I think outsourcing some of the bookkeeping is a good option, especially with a volunteer board. You could also ask local accounting firms about nonprofit services. Whatever route you choose, I’d keep clear separation of duties and board oversight around cash and payments.

I’d be interested in seeing examples of this as well. Digital transactions introduce a few extra considerations around authorisation, documentation and audit trails. A policy that keeps those controls clear while remaining practical would be especially useful.

I’ve heard similar discussions, although I’d be cautious about treating them as confirmed without an official source. The Single Audit threshold and indirect cost rate can have significant implications for nonprofits. It would be useful to know where others are seeing the latest guidance.

While the Nonprofit Check Plus API is cheaper than Zeffy API, and ProPublica Nonprofit Explorer upon check, I will like to know if a single subscription can be used by a team of five.

I’d generally use the actual manufacturing cost, rather than the retail price, when accounting for the books donated. The retail price represents potential sales value, not what the organisation actually spent. That said, I’d check your accountant’s preferred treatment, especially for donation reporting.

I think diversification is probably the safest approach. Having a healthy mix of grants, donations, earned income and other funding can make nonprofits less vulnerable when one source dries up. It may not make an organisation recession-proof, but it can certainly make the bumps easier to manage.

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From my experience, creating a pricing model isn’t easy. But doing some basic things can help achieve the objectives. I would recommend using a full-cost pricing model that separates direct costs like meals, rooms, facilities, and program staff from allocated overhead. Then calculate the total cost per participant and add a reasonable margin or…

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I don’t think any single database tracks that mix by mission area. But key insights do exist. For example, according to Candid, government grants fund about 30% of US nonprofits, with more than 35,000 relying on them for over half their revenue. Human services are the most vulnerable.
Also, according to the Charities Aid Foundation’s UK Giving… Read more

Economic jitters hit everyone differently. Diverse funding is your best shield. Mix grants, individual gifts, and earned income so no single dip sinks you.

Post-award reporting can be a real challenge when finance, grants, and program teams have to coordinate data from different systems. A short survey like this could provide useful insight into where the biggest reporting bottlenecks occur and what teams actually need. I would be particularly interested in seeing whether the responses point to…

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