· Reviewed by Nimra Khalid
What is nonprofit fund accounting?
Fund accounting is how nonprofits show that money given for a purpose was spent on that purpose. Each fund or grant is tracked as its own pool with its own balance, budget and spending. Restricted funds can only be used as the donor specified; unrestricted funds cover general operations. Reports show each pool separately, then combined into the organization's statements.
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Fund accounting: what we do and how it runs
Fund accounting is how nonprofits show that money given for a purpose was spent on that purpose. Each fund or grant is tracked as its own pool with its own balance, budget and spending. Restricted funds can only be used as the donor specified; unrestricted funds cover general operations. Reports show each pool separately, then combined into the organization's statements.
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What it is
Fund accounting is how nonprofits show that money given for a purpose was spent on that purpose. Each fund or grant is tracked as its own pool with its own balance, budget and spending. Restricted funds can only be used as the donor specified; unrestricted funds cover general operations. Reports show each pool separately, then combined into the organization's statements.
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What you get
Restricted and unrestricted funds tracked by class or tracking category
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How it runs
Grant reports and budget-to-actual on each funder's schedule
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Discovery call
A 20-minute call about your funders, grant periods, how restrictions are tracked today, who prepares your annual return, and what the board wants to see.
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A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Who it is for
Executive directors doing the books
You run programs, raise money and keep QuickBooks going at night. Grant reports are due and the class coding is behind. You want it done right without hiring a finance manager.
Nonprofits with several grants
Three or more funders, each with its own budget, period and report template, means spending has to be allocated correctly the first time or the reports will not tie.
Boards and treasurers who want clarity
The finance committee needs a statement of activities by fund, restricted balances, and a plain answer on whether reserves are healthy. Monthly, in the same format.
What's included
- Fund and grant structure set up as classes, tracking categories or locations
- Every transaction coded to a fund and, where applicable, a grant and program
- Restricted, temporarily restricted and unrestricted balances tracked monthly
- Grant budget-to-actual reports on each funder's schedule and template
- Release-from-restriction entries when conditions are met
- Functional expense allocation: program, management and general, fundraising
- Shared cost allocation using an agreed, documented method
- Statement of financial position and statement of activities monthly
- Donor and pledge receivable tracking reconciled to your CRM
- In-kind donation recording with documented valuation support
- Year-end data compiled for IRS Form 990, Charity Commission or ACNC returns
- Audit schedules and grant close-out packages on request
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| Fund balance report | Every restricted fund balance reconciled and never negative without explanation | Monthly |
| Grant budget-to-actual | Delivered at least 5 business days before each funder's due date | Per grant schedule |
| Statement of activities by fund | Issued by business day 7 after second-accountant review | Monthly |
| Functional expense report | Program, management and fundraising split documented and consistent | Quarterly |
| Board finance pack | Summary, statements, reserves and open grants in one document | Monthly or quarterly |
| Year-end return data | Form 990, Charity Commission or ACNC data compiled for your preparer | Annually |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
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Discovery call
A 20-minute call about your funders, grant periods, how restrictions are tracked today, who prepares your annual return, and what the board wants to see.
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Fund structure and chart review
We map every grant and fund to a class or tracking category, review the chart of accounts for functional reporting, and agree the shared cost allocation method.
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Coding catch-up and first close
A named accountant recodes the current year to the new structure, reconciles opening fund balances, and closes the first month with a fund balance report you can check against grant agreements.
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Monthly close and grant calendar
Each month runs on CloseTrack; grant reports are produced from the calendar ahead of due dates and reviewed under Two-Tier Review before they go to funders.
Software we work in
How much does fund accounting cost?
Fund accounting is priced as a flat monthly fee based on transaction volume, the number of active funds and grants, and how many funder reports fall due each quarter. An initial recoding project is quoted separately if the current year needs restructuring. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What moves the quote
- Number of active grants and funds, and how often each reports
- Monthly transaction volume and number of bank accounts
- Whether functional expense allocation and shared cost methods already exist
- Annual return support: Form 990 data, Charity Commission or ACNC compilation
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| US | Outsourced bookkeeping runs $150 to $1,600 per month; review-backed plans $400 to $800 | indinero, RadCity, NerdWallet (2026) |
| UK | Fixed fees £100 to £1,500 per month; £150 to £400 for 50 to 200 transactions | UK provider pricing surveys (2026) |
| Canada | C$300 to C$2,000 per month; most organizations C$400 to C$800 | Outsource Bookkeeping CA, TheAccTaxCo (2026) |
| Australia | A$300 to A$1,500 per month fixed fee for a typical small organization | Australian bookkeeping fee surveys (2026) |
Third-party ranges for orientation, not our prices.
Get a custom quote No setup fee. Month-to-month.
Fund accounting for your industry
Security and compliance
- Donor personal data stays in your CRM; the ledger holds only what reporting needs
- Read-only bank feeds where available; we never move money or release grants
- MFA on every login, per-client access log, NDA per engagement
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do nonprofit fund accounting services cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. As a market reference, US outsourced bookkeeping runs $150 to $1,600 per month, with review-backed plans between $400 and $800 (indinero, 2026). UK fixed fees range from £100 to £1,500 per month, Canada from C$300 to C$2,000, and Australia from A$300 to A$1,500. Fund tracking adds to the base depending on grant count.
What is the difference between restricted and unrestricted funds?
Restricted funds are gifts or grants the donor has tied to a purpose or a time period; they can only be spent as specified and must be reported separately until the restriction is met. Unrestricted funds can be used for any purpose the board approves. We track both by class or tracking category and post a release entry when a restriction is satisfied.
Can you do this in QuickBooks Online rather than a nonprofit system?
Yes. QuickBooks Online with classes and locations, or Xero with tracking categories, handles fund and grant tracking for most small and mid-sized nonprofits. Sage Intacct suits larger organizations with many grants. We work inside your existing subscription; if you need a new structure, our chart of accounts setup service builds it.
Do you prepare our Form 990 or charity return?
We compile the data: statement of activities, functional expenses, balance sheet, program descriptions and schedules in the format your preparer needs. In the US your CPA prepares and signs Form 990. In the UK your accountant or trustees file with the Charity Commission, and in Australia your accountant lodges with the ACNC. We give no tax advice.
How do you allocate shared costs like rent and salaries?
We agree a documented method with you, such as square footage for rent or timesheet percentages for salaries, apply it consistently every month, and record it in the policy note. A consistent, written method is what funders and auditors look for.
Can you produce reports in each funder's own template?
Yes. Each grant is set up with its budget lines mapped to your chart of accounts, so the budget-to-actual can be exported into the funder's spreadsheet or portal format. Reports are scheduled on the grant calendar and delivered at least five business days before the due date.
What if our coding is a mess right now?
We start with a recoding project for the current fiscal year: every transaction reassigned to the correct fund and grant, opening balances reconciled to grant agreements, and a fund balance report you can check. Then the monthly service takes over. Our bookkeeping clean up service handles the ledger side.
Will this help us get through an audit or a funder review?
It helps you prepare. Reconciled fund balances, documented allocation methods and grant reports that tie to the ledger are what auditors and program officers request first. Our audit support service prepares the schedules on their list. We do not issue audit opinions.
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