Over the course of my 30 years of bookkeeping, I have had the pleasure of supporting several non-profit organizations. Non-profit groups face additional challenges when it comes to bookkeeping and financial reporting:

• Non-profits are run by a board of directors who govern the organization according to its bylaws.
• The treasurer liaises directly with the bookkeeper to keep the finances running smoothly.
• A non-profit’s income stream may include donations, grants, casino incomes, and fundraising.
• Some of these incomes are restricted and can only be spent on approved expenses. The restrictions might also pertain to the timeframe in which the income can be spent.

The accounting health of a non-profit organization depends on clear communication with the board of directors and a bookkeeper who pays close attention accounting details required by the revenue streams typically found at non-profit organizations such as:

1. Donations
A non-profit can apply for registered charity status, which requires the organization provide donation receipts for income tax purposes. To take advantage of this tax relief, the bookkeeper must ensure all donations received have been documented in order to issue official receipts.

2. Fundraisers
Many non-profits use fundraising as a source of revenue. Fundraisers need to be accounted for with project income and expenses to determine the profitability of the event. A good bookkeeper will be able to account for fundraisers and provide accurate numbers.

3. Casino Income
Casino Income is another revenue stream for many non-profits. Casino income is restricted by the type of expenses that can be paid using these funds. In addition, a casino report needs to be submitted to the AGLC at the end of the term.

The health of a non-profit’s accounting depends on clear communication with the board of directors and a good bookkeeper who pays close attention to accounting details required by the revenue streams typically found at non-profit organizations.

Non-profit organizations benefit greatly by having an efficient bookkeeper who is experienced in non-profit revenue streams, expenses, and mission focus. Profitline Bookkeeping has extensive experience with non-profits and enjoys working with these groups as a way to give back to our community. Call us up; we would love to work with your organization!