#nonprofit
Nonprofit
Nonprofit accounting, fund tracking, and compliance
Private School Bookkeeping: Deferred Tuition and Fund Accounting Explained
Private school tuition is an exchange transaction under ASC 606, not a donation, so tuition collected before the school year starts must be booked as deferred revenue and recognized ratably over 10 or 12 months, while donor-restricted gifts follow separate ASC 958 rules.
IRS Business Tax Account Expands to Partnerships, Nonprofits, and Government Entities
On April 6, 2026, the IRS opened its free Business Tax Account portal to partnerships, tax-exempt organizations, and government entities, letting a designated official view balances, download an EIN verification notice, and make payments online instead of mailing paper forms.
The Low-Profit LLC (L3C): What Mission-Driven Founders Should Know
L3Cs are legally recognized in only about ten states and roughly 1,700 exist nationwide, because the IRS never confirmed that L3C status automatically satisfies the program-related-investment test the structure was built around.
Contributed Services in Nonprofit Accounting: ASC 958-605 Recognition Guide
Under ASC 958-605, a nonprofit recognizes contributed services at fair value only when the work created or enhanced a nonfinancial asset, or required a specialized skill the organization would otherwise have paid for and the volunteer actually holds that credential — general volunteer hours, however valuable, stay off the books and out of Form 990.
Natural vs. Functional Expense Classification: How Nonprofits Build the Form 990 Statement of Functional Expenses
Since ASU 2016-14, every nonprofit filing a full Form 990 must allocate expenses across program, management and general, and fundraising using a reasonable, consistent methodology — here's how time studies, square footage, and headcount allocation actually work, and the five mistakes that draw auditor scrutiny.
Nonprofit Reserve Funds and Revenue Diversification: Surviving a Federal Grant Freeze
Since early 2025, roughly $425 billion in federal funding has been canceled, paused, or put under review, while 52% of nonprofits hold three months or less of operating cash. This guide covers building a 3–6 month unrestricted operating reserve, capping any single funder at 25–30% of revenue, and tracking both in books that answer concentration questions in minutes.
Accepting Cryptocurrency Donations: A Nonprofit's Guide to Gift Acceptance, Valuation, and IRS Substantiation
Nonprofits accepting cryptocurrency gifts over $5,000 cannot rely on exchange prices for tax substantiation — IRS Chief Counsel Advice 202302012 requires a qualified appraisal, and ASU 2023-08 now mandates fair-value accounting for any crypto a nonprofit holds past the point of receipt.
Your Nonprofit Just Received a Bitcoin Donation. Now What?
A practical guide for nonprofits accepting cryptocurrency donations — how to write a gift acceptance policy for digital assets, apply FASB's ASU 2023-08 fair-value accounting rules, and meet IRS substantiation requirements including Form 8283 signatures, qualified appraisals over $5,000, and the Form 8282 three-year disposition rule.
How Nonprofits Should Value and Record Gifts-in-Kind Under ASC 958-605
ASU 2020-07 requires nonprofits to present contributed nonfinancial assets as a separate line item, disaggregated by category, with disclosed valuation methods. This guide covers the fair-value rules of ASC 958-605 — which volunteer services are recordable, how to value donated goods, professional services, and facility use, the offsetting journal entries, and the $25,000 Form 990 Schedule M threshold.
Recording Gifts-in-Kind: A Nonprofit Accounting Guide to ASU 2020-07
Under ASU 2020-07 (ASC 958-605), nonprofits must record donated goods, services, and facility use at fair value on a separate line item and disclose valuation methodology by category, or risk an auditor flagging the financial statements.
True Endowment vs. Board-Designated Endowment: A UPMIFA Guide for Nonprofits
True endowments are created by donor restriction and governed by UPMIFA; board-designated endowments are unrestricted funds the board chose to treat like an endowment and can undesignate at any time — mixing up the two is the most common misstep auditors flag in nonprofit endowment reviews.
The Fiduciary Duties Every Nonprofit Board Member Must Know
Nonprofit directors carry three legal fiduciary duties — care, loyalty, and obedience — and courts have held boards personally liable for failing to ask basic questions about how the organization spent its money.