Fund accounting · Grant tracking · Form 990 support · Donor reporting · FASB ASC 958

Nonprofit accounting where restricted and unrestricted funds must never be confused — ever.

Nonprofit accounting operates under FASB ASC 958 — a fundamentally different framework from for-profit accounting. fund accounting, net asset classification, functional expense allocation, and grant compliance reporting aren’t optional additions. Pair fund-based bookkeeping with financial reporting, audit support, or see the full offering for CPA firms.

Discuss your nonprofit clients For CPA Firms →

Fund accounting specifics

Why fund accounting is not bookkeeping with different labels.

Fund accounting tracks financial activity by the source and restrictions on the funds — not just by income and expense category. a restricted grant cannot be reported as unrestricted revenue, used for any purpose other than what the donor specified, or transferred without proper documentation.

Net asset classification is mandatory under FASB ASC 958

Every nonprofit must classify net assets into two categories: without donor restrictions and with donor restrictions. misclassification produces financial statements that fail audit and mislead the board about available resources.

Functional expense allocation affects grant compliance

Program expenses, management expenses, and fundraising expenses must be allocated separately. grant funders typically impose limits on administrative overhead. incorrect functional allocation can trigger grant clawbacks and audit findings.

Grant tracking requires expenditure reporting by grant

Every restricted grant requires its own tracking — funds received, funds expended, and unspent balance. grant reports submitted to funders must reconcile exactly to the grant ledger. a discrepancy is a compliance issue, not just an accounting error.

Fund types we track

Unrestricted operating funds

General operating funds with no donor-imposed restrictions. the base of day-to-day operations and management reporting.

Temporarily restricted funds

Donor restrictions that expire with time or when a specific purpose is accomplished. releases from restriction posted when conditions are met.

Permanently restricted / endowment

Funds where the principal must be maintained permanently. only investment income is available for spending, subject to donor terms.

Federal & state grants

Government grants with specific expenditure requirements, reporting obligations, and audit thresholds under Uniform Guidance (2 CFR 200).

Capital campaign funds

Restricted funds raised for specific capital projects. tracked separately until the project is complete and restrictions are released.

Full service scope

What we handle for your nonprofit CPA firm clients.

Fund accounting & net asset tracking

Complete fund-based bookkeeping with net asset classification. restricted and unrestricted funds maintained separately with proper release from restriction entries posted monthly.

Grant tracking & reporting

Individual grant ledgers maintained for every active grant. expenditure reports prepared per funder requirements. budget vs actuals tracked by grant. funder reporting support prepared for your CPA's review.

Form 990 preparation support

Data compilation and workpaper preparation for Form 990 and 990-EZ. supporting schedules prepared. functional expense allocation calculated per your firm's methodology for Part IX.

Functional expense allocation

Program, management, and fundraising expense allocation applied consistently using documented methodology. direct costs identified. shared costs allocated using time study or other approved basis.

Donor & contribution tracking

Contribution recording with donor restriction identification. pledge receivable management. in-kind contribution valuation support. donor acknowledgment letter data prepared on request.

Nonprofit financial statements

Statement of financial position, statement of activities, statement of functional expenses, and statement of cash flows prepared in accordance with FASB ASC 958 for board and auditor review.

Nonprofit clients need accountants who know the difference between restricted and unrestricted — before they touch the books.

Book a call and describe your nonprofit client base. We'll confirm exactly what we handle and how fund accounting is maintained across your engagements.

Book a discovery call

Or email us directly at accounting@nimblechapps.finance — no forms, no bots.

Services

QBO & Xero bookkeeping — certified, accurate, on time

For CPA Firms

How a CPA firm adds a certified offshore accountant in 2 weeks

Industries

Real estate accounting — trust accounts, rent rolls, CAM reconciliations

Resources

The true cost of a local bookkeeper vs a certified offshore accountant

Company

Build your accounting career with a structured path to EA and CMA

Nonprofit accounting where restricted and unrestricted funds must never be confused — ever.

Why fund accounting is not bookkeeping with different labels.

What we handle for your nonprofit CPA firm clients.

Nonprofit clients need accountants who know the difference between restricted and unrestricted — before they touch the books.