Nonprofit Accounting Basics

Recent Articles

Nonprofits Should Prepare Now to Accept Cryptocurrency

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

Accrued Vacation

Most organizations include some paid time-off in their benefits packages offered to employees.  Rules concerning when an employee is eligible to receive these benefits vary widely within organ

Give Me Your 990!

Public Disclosure Requirements for Tax-Exempt Organizations | 2022 Edition

Reporting the Total Number of Volunteers on the Form 990

Nonprofits have only a few touchpoints where a lasting impression can be made in the blink of an eye.

Governance Review of the Form 990

Form 990, Part VI, Line 11 relates to the organization’s process for filing the Form 990 prior to the form being filed with the IRS. Line 11 includes two parts.

Top Ten Items to Review at Year-End

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

Program Costs to Earned Revenue Ratio

This ratio calculates the portion of program expenses that is covered by related program revenue.

Net Investment in Fixed Assets

This calculation subtracts any existing long-term debt related to fixed assets (e.g., vehicle loan, mortgage, leasehold improvement loan, etc.) from the value of fixed assets.

Ratios: Profit Margin (Surplus Margin)

This calculation indicates by what percent revenues are over or under expenses.

Operating Reserve Ratio

This ratio is a focused variant of the Months Cash on Hand ratio.