Accurate donation records mean every gift is recorded once, with the donor, date, amount, fund and any restriction, and that your donor database agrees with your accounting system every month. Issue receipts that meet CRA or IRS requirements, keep copies, and reconcile your donor CRM to your general ledger monthly.
When a nonprofit sets goals to grow its programs or expand outreach, money management plays a big role in whether those goals are hit or missed. A well-run budget helps guide decisions, but it goes deeper than just staying within the numbers. Nonprofits that take time to measure their financial performance can uncover hidden gaps,…
Before year-end, reconcile every bank account, confirm donation and grant revenue, review restricted fund balances, clear old payables and receivables, and draft next year’s budget. In Canada, the T3010 is due within six months of your fiscal year-end. In the US, Form 990 is due on the 15th day of the fifth month after year-end, with a six-month extension available.
To fix nonprofit cash flow problems, first map when cash actually arrives and leaves with a rolling forecast. Then speed up receivables such as grant claims and pledges, time large expenses around known inflows, build an unrestricted reserve, and set up a line of credit before you need it.
A strong nonprofit board report is short, timely and consistent: a statement of financial position, a budget-versus-actual statement of operations, a cash flow forecast, restricted fund balances and a one-page summary of what changed and why. Produce it monthly or quarterly from reconciled books, in the same format every time.
Grant compliance means spending grant money only on approved costs, within the grant period, and reporting on time with records that prove it. The most common problems are untracked spending, mixing grant funds with general funds, missed reporting deadlines and weak documentation. Track each grant as its own fund, keep a deadline calendar and reconcile grant spending monthly.
Running a nonprofit takes more than heart and hard work. Long-term planning plays a big role in keeping programs going, staff supported, and daily operations steady. One of the most helpful tools for this is a multi-year financial forecast. It gives nonprofit leaders a clearer view of what their money might look like over the…
Reliable donor funding keeps nonprofits running. Whether it’s organizing community workshops, paying staff, or covering everyday costs, steady support from donors makes all these things possible. But what happens when donations start to dip? Many nonprofits know the struggle of trying to plan monthly programs when donor money is unsure or delayed. As summer shifts…
Restricted funds are donations or grants that a donor or funder has limited to a specific purpose or time period. To manage them well, record each restriction when the money arrives, track it as its own fund in your accounting system, reconcile it monthly, and report restricted and unrestricted balances separately to your board and funders.