Nonprofit Accounting Training

Lesson 1 • Chart of Accounts Design

Guides construction of a nonprofit chart of accounts aligned with reporting needs. Proper account structure reduces errors in financial statement preparation.

Lesson 2 • Core Accounting Principles

Introduces generally accepted accounting principles as applicable to nonprofit organisations. Links standard accrual concepts to modifications specific to the nonprofit sector.

Lesson 3 • Regulatory and Compliance Framework

Surveys the regulatory environment that governs financial reporting by nonprofit organisations. Identifies the compliance obligations that shape choices in accounting policy.

Lesson 4 • Fund Accounting Basics

Explains fund accounting as the organising structure for the finances of a nonprofit organisation. Demonstrates how funds segregate resources based on donor intent and purpose.

Lesson 1 • Recording Restricted Contributions

Demonstrates journal entries for receiving and tracking restricted gifts. Proper recording ensures that the balances of restrictions reconcile to the supporting schedules.

Lesson 2 • Net Asset Classes Explained

Defines the net asset classes of without-donor-restriction and with-donor-restriction. Connects classification to the presentation on the statement of financial position.

Lesson 3 • Releasing Restrictions

Covers the mechanics of reclassifying net assets when the restrictions are satisfied. Timely releases keep the financial statements accurate and the donor reports credible.

Lesson 4 • Endowment Accounting

Applies the concepts of restriction to permanent and term endowments. Learners calculate the spendable returns and record disclosures for underwater endowments.

Lesson 1 • Accounting for Government Grants

Addresses the unique characteristics of government grants as exchange transactions or contributions. Learners apply the accounting methods for cost-reimbursement grants and fixed-price grants.

Lesson 2 • Earned Revenue and Programme Fees

Applies the five-step model for exchange revenue to membership dues, fees, and sales. Proper recognition aligns the timing of revenue with the delivery of service.

Lesson 3 • Conditional Contributions and Grants

Explains the criteria of barriers and right of return that define conditional contributions. Revenue is deferred until the conditions are substantially met.

Lesson 4 • Exchange vs. Contribution Revenue

Distinguishes exchange transactions from contributions using the test of commensurate value. The classification determines which recognition standard is applicable to each transaction.

Lesson 1 • Accounting for Joint Costs

Applies the criteria of audience, purpose, and content for the allocation of joint costs. Misclassification of joint costs inflates programme ratios and draws scrutiny.

Lesson 2 • Cost Allocation Methodologies

Presents the allocation bases of time and effort, square footage, and headcount. Consistent selection of methodology reduces audit risk and supports grant reporting.

Lesson 3 • Functional Expense Categories

Defines the expense functions of programme services, management and general, and fundraising. Correct classification directly affects the key efficiency ratios used by donors.

Lesson 4 • Accounting for Payroll and Benefits

Covers payroll processing, accrual of benefits, and entries for retirement plans for nonprofit organisations. Accurate payroll accounting constitutes the largest single expense area for most organisations.

Lesson 1 • Statement of Activities

Builds the statement of revenue and expense showing changes in each net asset class. The column structure and subtotals must reflect the current reporting requirements.

Lesson 2 • Statement of Financial Position

Constructs the balance sheet of a nonprofit organisation with proper sections for assets, liabilities, and net assets. Emphasis is placed on the ordering of liquidity and the presentation of net asset classes.

Lesson 3 • Statement of Functional Expenses

Prepares the matrix statement that displays expenses by both nature and function. This statement is required for voluntary health and welfare organisations.

Lesson 4 • Notes to Financial Statements

Identifies the mandatory and commonly discretionary disclosures for the financial statements of a nonprofit organization. Complete notes prevent adjustments during audits and satisfy the information needs of stakeholders.

Lesson 1 • Segregation of Duties

Identifies incompatible duties and designs compensating controls for small staff sizes. Proper segregation is the primary deterrent against the misappropriation of assets.

Lesson 2 • Controls over Cash and Revenue

Implements controls over cash receipts, online donations, and event revenue. Timely deposits and dual-custody procedures minimise opportunities for theft.

Lesson 3 • Audit Preparation and Management

Organises the schedule package prepared by the client and manages requests from the auditor. Proactive preparation reduces audit hours and demonstrates organisational competence.

Lesson 4 • Controls over Disbursements and Payroll

Establishes workflows for approval, verification of vendors, and controls for authorisation of payroll. Disbursement controls prevent unauthorised payments and fictitious employees.

Lesson 1 • Indirect Cost Rates

Explains the options of negotiated and de minimis indirect cost rates for nonprofit organisations. Correct application of the rate maximises cost recovery without exposing the organisation to audit findings.

Lesson 2 • Grant Reporting and Drawdowns

Prepares financial progress reports and manages requests for cash drawdowns. Timely and accurate reporting maintains relationships with funders and ensures cash flow.

Lesson 3 • Grant Award Setup

Establishes account codes, budget periods, and tracking of restrictions at the inception of the award. Proper setup prevents the need for cost transfers and disallowed charges at a later stage.

Lesson 4 • Grant Closeout Procedures

Executes the final financial reports, disposition of equipment, and retention of records at the time of closeout. A complete closeout protects the organisation from audit findings originating after the award period.

Lesson 1 • Budget Monitoring and Variance Analysis

Produces monthly reports comparing budget to actual amounts and investigates significant variances. Regular monitoring enables corrective action before deficits occur at the end of the year.

Lesson 2 • Financial Reporting to Leadership

Translates complex financial data into dashboards and narratives for the board. Effective reporting drives informed governance and strategic allocation of resources.

Lesson 3 • Annual Operating Budget Process

Guides the full budget cycle from the projection of revenue through the approval of the board. A participatory process improves accuracy and buy-in from the organisation.

Lesson 4 • Cash Flow Forecasting

Constructs rolling 13-week and annual cash flow forecasts for nonprofit organisations. Forecasting prevents liquidity crises that are caused by timing gaps in grant payments.