Software
Fund accounting, grant tracking, functional expense allocation, Form 990 support, and board-ready reporting. Offshore accountants trained on nonprofit GAAP and IRS exempt-org requirements. Intacct, QuickBooks Nonprofit, NetSuite for Nonprofits, Aplos, Sage 100.
Scope
Software
Nonprofit accounting has three features that don't exist in for-profit bookkeeping: fund restrictions (money comes with strings attached), functional expense allocation (spending has to be classified as program, management, or fundraising), and regulatory reporting that flows into a public document (Form 990, which anyone can read on GuideStar or ProPublica). Generic bookkeepers who try to run nonprofit books usually produce financial statements that look right but fail on one or more of these dimensions.
Every nonprofit has three net asset categories under GAAP (ASU 2016-14): without donor restrictions (unrestricted), with donor restrictions (time-restricted or purpose-restricted), and permanently restricted (endowment principal). Revenue flows into the correct category based on donor intent. When restrictions are satisfied (time passes, program happens), net assets reclassify. If your books don't track this correctly, your Statement of Activities is wrong, and your audit gets painful.
Every expense in a nonprofit's chart of accounts has to be classified as Program Services, Management & General, or Fundraising. Shared costs (rent, utilities, shared staff time) need documented allocation methods. Form 990 Schedule O requires disclosure of the allocation method. Offshore accountants trained on nonprofit work handle allocation monthly and document the method in the workpapers – not as a year-end panic project.
Larger nonprofits ($1M+ revenue) often have 5–50 active grants at any time, each with restrictions, reporting requirements, and compliance obligations. Federal grants add Uniform Guidance (2 CFR 200) requirements: indirect cost rate, procurement standards, time and effort reporting, single audit thresholds. Offshore nonprofit accountants handle grant-by-grant revenue recognition, allowable-cost coding, and grant-specific expense reporting.
Nonprofits often run on Sage Intacct (fund accounting strength) or NetSuite for Nonprofits. Pair with offshore bookkeeping and offshore AP. Context on offshore accounting on our homepage.
FAQ
Yes. Schedule A (public support test), Schedule B (contributors), Schedule O (supplemental), Schedule R (related organizations), Schedule G (fundraising events), functional expense detail, and compensation disclosure. Final 990 filing is typically done by your tax preparer; we deliver audit-ready workpapers.
Yes. Allowable cost determination, indirect cost rate, time and effort reporting, procurement standards documentation, and single audit preparation.
Yes. Donor management data flows into the accounting system for receipt generation, pledge tracking (ASC 958-605), and contribution-reporting. Reconciliation between donor database and GL monthly.
Yes. Endowment principal vs accumulated return tracking, spending rule application, donor-specified vs general endowment accounting, UPMIFA-compliant reporting.
Yes. Religious nonprofits have specific exemptions (e.g., from Form 990 in some cases) but otherwise follow the same GAAP. We handle churches, denominational organizations, and faith-based service organizations.
Yes. Schedule of Expenditures of Federal Awards (SEFA), major program determination, internal control documentation, and compliance testing support. The audit itself is performed by your external auditor; we prepare the support.
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