Establishing a Nonprofit Chart of Accounts
This guide and example for constructing a nonprofit chart of accounts was compiled by Jitasa on August 11, 2021.
“Nonprofits view their accounting processes through an accountability lens rather than one based solely on profitability and revenue generation…. This is because they reinvest all funds back into their organization and mission. Plus, nonprofits need to allocate their expenses according to various restrictions and stipulations set by their generous contributors. Naturally, these factors mean nonprofits must leverage a number of systems and reports unique to the sector to keep their finances well organized. The foundation to effective reporting at these organizations is the nonprofit chart of accounts. The chart of accounts (COA) tracks your various ledgers and everything your nonprofit does financially. Because the COA compiles so much information, this important resource can be daunting to create and challenging to keep up with, especially if you don’t fully understand its usefulness.”
