How it runs for nonprofits, charities and associations
Our ReconBot workflow downloads each payout report, splits it into gifts, fees, refunds and disputes, matches gifts to CRM records, records each gift gross with the fee as fundraising expense and posts the net deposit to the bank. Exceptions are logged for the development team, and the clearing account is at zero at every close.
What is payment processor reconciliation?
Payment processor reconciliation is the work of proving that the money a processor or marketplace deposits equals your gross sales less its fees, refunds, chargebacks, reserves and adjustments for the same settlement period. Each payout is broken into its parts and posted so revenue, fees and sales tax are correct and the bank deposit matches to the cent.
What we handle for nonprofits, charities and associations
- Split each Stripe, PayPal and platform payout into gifts, fees, refunds and disputes
- Match gifts to donor CRM records and flag gifts missing from either side
- Record gifts gross with processor fees as fundraising expense
- Post refunds and chargebacks against the original gift and donor record
- Reconcile Benevity, GoFundMe and event platform settlements with the same workflow
The KPI that matters here
Every platform payout matched to the bank within 2 business days with gift totals agreed to the CRM monthly.
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
Payment processor reconciliation in other industries
Frequently asked questions
Should donations be recorded gross or net of processing fees?
Gross, with the fee recorded separately as a fundraising expense, because the donor gave the full amount and the acknowledgment must say so. Recording net understates both contributions and fundraising costs on the Form 990 and the statement of activities. Our reconciliation posts every gift at the amount the donor gave.
How do you reconcile Benevity or other workplace giving settlements?
Workplace giving platforms pay out monthly with a donor report listing each employee gift, the employer match and platform fees. We treat that report like a payout report, matching each gift and match to the CRM and recording fees as fundraising expense. Anonymous gifts are recorded to a generic donor record so the totals still agree.
What happens when a donor disputes a card gift?
The chargeback and its fee are posted against the original gift and the donor's CRM record is flagged for your development team. If the gift was restricted, the restricted fund is reduced by the same amount. Your team decides whether to respond to the dispute through Stripe; we record the outcome and clear the exception.
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