In short

Nonprofit bookkeeping tracks money by purpose as well as by account. Restricted grants and gifts are coded to a fund or class when received and released as eligible costs are paid, expenses are tagged to program, management and general, or fundraising, and a donation log is reconciled to deposits so acknowledgment letters match the books. Event income, in-kind gifts and grant receivables each need consistent treatment.

Coding every transaction twice

In a nonprofit ledger each transaction answers two questions: what kind of income or expense is it, and which fund or program does it belong to. We set up classes or fund codes once and apply them every month, so a grant's spending can be reported without a spreadsheet rebuilt from scratch.

The donation log

Gifts arrive by check, card, online giving platforms and sometimes stock. We keep a log of each gift with the date, donor, amount and any restriction, and reconcile its monthly total to deposits. Platform payouts are recorded gross, with processing fees as an expense, so the log and the books agree.

Grants received in advance

When a funder pays a grant before the work is done, the cash arrives before the related costs. We track the unspent balance of each restricted grant so you always know how much remains and when it must be spent.

Events and in-kind gifts

Fundraising events mix ticket income, sponsorships and direct costs; in-kind gifts such as donated goods or services need a documented value. We record each consistently so your statements and annual return are supported.

Volunteer-friendly handoffs

Treasurers change. Our monthly close produces the same reconciliations and reports each month, saved in a shared folder, so a new treasurer can pick up where the last one left off.

Before we start

We review grant agreements to set up restricted funds correctly.

Nonprofits problems this addresses

  • Restricted grants and donations must be tracked separately from general funds
  • Board members and funders expect program, management and fundraising cost splits
  • Donors need written acknowledgments for gifts above IRS thresholds
  • Volunteer treasurers change and institutional knowledge is lost
  • Annual Form 990 information depends on clean, categorized books