How To Do Bookkeeping For A Non-Profit Organization?

A non-profit organization offers the chance to become a bookkeeper. While you might have extensive experience in the business for-profit sector, there are differences that should be considered. A nonprofit organization will usually provide a vital service to one or several parts of a community.

People will pay dues and then become members. The organization might also have donors who give money, services, or merchandise. You can know more about bookkeeping for non-profit organizations via https://www.goodstewardfinancialco.com/full-service-bookkeeping-accounting/.

Your customers and clients in a non-profit organization are either members, donors, or grant providers. Grant Receivables are listed in the Current Asset section. You would treat a pledge to donate as a donor receivable when it is received and a grant would be posted when it is granted.

Members Receivables will be posted when an invoice has been produced billing the member. FASB (The Financial Accounting Standards Board), requires that non-profits break down revenues and expenses for specific activities. Many donations and grants come with restrictions about how they can be used.

Revenues that are promised or received but have limitations on their use or time are considered restricted assets. They are posted to the balance sheet accounts until they are fulfilled. A fundraising event could be set up to raise funds to build a hospital wing. The use of these funds would be limited once they are received.