Non-Profit Organizations

Bookkeeping for non-profits and charities. We handle fund accounting, grant tracking, and Form 990 preparation so you stay compliant and donors stay confident.

The Industry

Non-profit accounting is different because you track restricted and unrestricted funds separately, report to boards and grantors, and file Form 990 instead of regular tax returns. Donors want to know their money went where they intended. Funders require detailed reports. The IRS wants proof you are operating as a public charity.

We work with 501(c)(3) charities, foundations, churches, arts organizations, community groups, and other non-profits. We know fund accounting, grant compliance reporting, donor acknowledgment requirements, and how to prepare Form 990 correctly so you maintain your tax-exempt status.

Who We Serve

501(c)(3) charities, private foundations, churches and religious organizations, arts and cultural groups, community organizations, social service agencies, and other non-profit entities in the DFW area.

What Makes Us Different

We understand fund accounting, donor restrictions, grant compliance, functional expense allocation, and Form 990 preparation. We know non-profit accounting follows different rules than for-profit business accounting.

The Services

Non-profit organizations need bookkeeping that handles donor restrictions, tracks grants separately, and produces the specialized reports required for compliance and funding. Here’s what we handle.

Fund Accounting

We track restricted and unrestricted funds separately. Donor restrictions are honored in the books. You can prove money given for specific purposes was spent on those purposes. Board-designated funds are tracked distinctly from donor-restricted funds.

Grant Management

We track grant revenue, allowable expenses, and reporting requirements by funder. You know what you can and cannot spend grant money on. Reports to funders are accurate and on time.

Form 990 Preparation

We prepare your annual Form 990 or 990-EZ correctly. Functional expense allocation, program versus overhead reporting, board compensation disclosures, all handled properly to maintain your tax-exempt status.

Donor Acknowledgment Tracking

We track donations and generate acknowledgment letters that meet IRS requirements for donor deductions. You stay compliant with substantiation rules and donors get the documentation they need.

The Problem

Most small non-profits use regular small business accounting and ignore fund accounting requirements. They mix restricted and unrestricted money together. When a donor asks if their grant was spent properly, they cannot prove it because the tracking was never there.

Form 990 errors are common when non-profits do not understand what the IRS is looking for. Functional expense allocation gets done wrong. Related party transactions are not disclosed properly. These mistakes can trigger audits or jeopardize tax-exempt status.

No Fund Accounting

When restricted and unrestricted funds are mixed together, you cannot prove you honored donor restrictions. Funders lose confidence. Major donors stop giving because they cannot see how their money was used.

Grant Compliance Problems

Without proper tracking, you might spend grant money on unallowable expenses or miss reporting deadlines. Funders can demand repayment or refuse future grants when compliance is sloppy.

Bad Form 990s

Errors on Form 990 raise red flags with the IRS and potential donors who review your filing. Incorrect functional expense allocation makes your overhead look too high. Missing disclosures suggest poor governance.

Board Reporting Gaps

Boards need specialized reports that show program results, fund balances, and budget versus actual by program area. Generic profit and loss statements do not give boards the information they need for oversight.

The Outcome

Your accounting properly tracks restricted funds and honors donor intent. Grants are managed with clear documentation of allowable spending. Reports to funders are accurate and submitted on time. Your Form 990 is prepared correctly and filed when due.

Donors and funders have confidence in your financial management. Board members get the reports they need for effective oversight. You maintain tax-exempt status because your compliance and documentation are solid.

Donor Confidence

Proper fund accounting and reporting build donor trust. Major donors can see exactly how their contributions were used. That transparency leads to continued support and larger gifts over time.

Funding Success

Clean financials and timely grant reporting help you win more funding. Foundations and corporate funders look for organizations with solid financial management. Good books open doors to bigger grants.

DFW's Trusted Bookkeeping Firm