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 applied to nonprofits. Connects standard accrual concepts to nonprofit-specific modifications.

Lesson 3 • Regulatory and Compliance Framework

Surveys the regulatory environment governing nonprofit financial reporting. Identifies compliance obligations that shape accounting policy choices.

Lesson 4 • Fund Accounting Basics

Explains fund accounting as the organizing structure for nonprofit finances. Demonstrates how funds separate resources by donor intent and purpose.

Lesson 1 • Recording Restricted Contributions

Demonstrates journal entries for receiving and tracking restricted gifts. Proper recording ensures restriction balances reconcile to supporting schedules.

Lesson 2 • Net Asset Classes Explained

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

Lesson 3 • Releasing Restrictions

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

Lesson 4 • Endowment Accounting

Applies restriction concepts to permanent and term endowments. Students calculate spendable returns and record underwater endowment disclosures.

Lesson 1 • Government Grant Accounting

Addresses the unique characteristics of government grants as exchange or contribution. Students apply cost-reimbursement and fixed-price grant accounting methods.

Lesson 2 • Earned Revenue and Program Fees

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

Lesson 3 • Conditional Contributions and Grants

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

Lesson 4 • Exchange vs. Contribution Revenue

Distinguishes exchange transactions from contributions using the commensurate-value test. Classification determines which recognition standard applies to each transaction.

Lesson 1 • Joint Cost Accounting

Applies the audience, purpose, and content criteria for allocating joint costs. Misclassification of joint costs inflates program ratios and triggers scrutiny.

Lesson 2 • Cost Allocation Methodologies

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

Lesson 3 • Functional Expense Categories

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

Lesson 4 • Payroll and Benefits Accounting

Covers payroll processing, benefit accruals, and retirement plan entries for nonprofits. Accurate payroll accounting is the largest single expense area for most organizations.

Lesson 1 • Statement of Activities

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

Lesson 2 • Statement of Financial Position

Constructs the nonprofit balance sheet with proper asset, liability, and net asset sections. Liquidity ordering and net asset class presentation are emphasized.

Lesson 3 • Statement of Functional Expenses

Prepares the matrix statement displaying expenses by both nature and function. This statement is required for voluntary health and welfare organizations.

Lesson 4 • Notes to Financial Statements

Identifies mandatory and common discretionary disclosures for nonprofit statements. Complete notes prevent audit adjustments and satisfy stakeholder information needs.

Lesson 1 • Segregation of Duties

Identifies incompatible duties and designs compensating controls for small staffs. Proper segregation is the primary deterrent to misappropriation of assets.

Lesson 2 • Cash and Revenue Controls

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

Lesson 3 • Audit Preparation and Management

Organizes the prepared-by-client schedule package and manages auditor requests. Proactive preparation reduces audit hours and demonstrates organizational competence.

Lesson 4 • Disbursement and Payroll Controls

Establishes approval workflows, vendor verification, and payroll authorization controls. Disbursement controls prevent unauthorized payments and fictitious employees.

Lesson 1 • Indirect Cost Rates

Explains negotiated and de minimis indirect cost rate options for nonprofits. Correct rate application maximizes cost recovery without audit exposure.

Lesson 2 • Grant Reporting and Drawdowns

Prepares financial progress reports and manages cash drawdown requests. Timely and accurate reporting maintains funder relationships and cash flow.

Lesson 3 • Grant Award Setup

Establishes account codes, budget periods, and restriction tracking at award inception. Proper setup prevents cost transfers and disallowed charges later.

Lesson 4 • Grant Closeout Procedures

Executes final financial reports, equipment disposition, and record retention at closeout. Complete closeout protects the organization from post-award audit findings.

Lesson 1 • Budget Monitoring and Variance Analysis

Produces monthly budget-to-actual reports and investigates significant variances. Regular monitoring enables corrective action before year-end deficits occur.

Lesson 2 • Financial Reporting to Leadership

Translates complex financial data into dashboards and narratives for boards. Effective reporting drives informed governance and strategic resource allocation.

Lesson 3 • Annual Operating Budget Process

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

Lesson 4 • Cash Flow Forecasting

Constructs rolling 13-week and annual cash flow forecasts for nonprofits. Forecasting prevents liquidity crises caused by grant payment timing gaps.