How it runs for nonprofits, charities and associations
Funder reports are produced in each funder's format from the same closed ledger, so the numbers a funder sees always agree with what the board saw.
What is outsourced financial reporting?
Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions.
What we handle for nonprofits, charities and associations
- Statement of financial position and activities by fund and restriction
- Functional expense statement by program, management and fundraising
- Budget-to-actual for the organization and by grant with variances explained
- Cash, reserve and months-of-expenses coverage against the reserve policy
- Funder reports in each funder's template from the closed ledger
The KPI that matters here
Board pack delivered within 7 business days of month-end with every grant variance over 10% of budget explained.
Nonprofits compliance notes
IRS Form 990 data (US)
Tax-exempt organizations file Form 990, 990-EZ or 990-N depending on gross receipts and assets, by the 15th day of the fifth month after year-end. We prepare the underlying data: revenue by source, functional expenses by program, management and fundraising, net assets by restriction, and officer compensation schedules. Your CPA reviews and files the return; we provide preparation support only.
Restricted versus unrestricted funds
Under ASU 2016-14, net assets are presented with donor restrictions and without donor restrictions, and restrictions are released when the purpose or time condition is met. We track each restricted gift and grant from receipt to release in the ledger, so the statement of activities and the notes show releases with support rather than estimates.
Charity Commission (England and Wales)
Registered charities with income over £25,000 must file an annual return and accounts within 10 months of the financial year-end, and those above the audit threshold need an independent examination or audit. We keep the books to Charities SORP categories where the charity reports on an accruals basis, and assemble the figures for the trustees' annual report. The trustees and their examiner or auditor remain responsible for the filing.
ACNC (Australia)
Charities registered with the Australian Charities and Not-for-profits Commission lodge an Annual Information Statement within six months of year-end, with financial reporting obligations that rise with size. We prepare the financial figures and, where the charity is registered for GST, the BAS workpapers for your TPB-registered BAS agent or accountant. We do not lodge the statement or the BAS.
Nonprofits software we work in
- QuickBooks Online
- Xero
- Sage Intacct
- Bill.com
- Stripe
- PayPal
- Gusto
- Bloomerang
- DonorPerfect
- Neon CRM
- All 50 platforms
More for nonprofits, charities and associations
Other services for nonprofits
Financial reporting in other industries
Frequently asked questions
Can you produce reports in the format each funder requires?
Yes, each funder's report template is loaded once with its budget lines mapped to your chart of accounts and grant tags. At period end the report is generated from the closed ledger, reviewed and handed to your grant manager for narrative and submission. Because the mapping is fixed, the same expense is never reported differently to two funders.
What does the board pack look like for a small nonprofit?
For a smaller organization it is usually four pages: a statement of financial position, a statement of activities by fund against budget, a functional expense summary and a cash and reserve view, with a one-page note. Larger organizations add grant budget-to-actual schedules and program-level detail. The KPI dashboard page for nonprofits covers the on-screen version.
Do you prepare the year-end financial statements for the audit?
We prepare the trial balance, fund roll-forwards, functional expense schedule, release schedule, receivables and payables aging and the other audit schedules from the reconciled ledger. Your auditor or independent examiner performs the audit and issues the opinion. We answer their bookkeeping questions through you and provide support documents from LedgerDesk.
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