| You have the opportunity to join a non-profit | | | | been received or promised and have constraints of |
| organization as their bookkeeper and while you may | | | | use or time are restricted assets and are posted to |
| have a great deal of experience working within the | | | | balance sheet accounts until such time the constraints |
| business for profit world there are some differences | | | | are met. For example a fund raising event may be |
| between the two types of organizations that are | | | | instituted to raise money to build a new wing for a |
| important to consider. Usually a nonprofit organization | | | | hospital. These funds when received would be |
| will be providing an important service to one or more | | | | restricted by use. They could not be used or |
| parts of a community and the people of the | | | | co-mingled with other hospital revenues. |
| community will pay dues and become members of the | | | | Some of the reports you may be required to produce |
| non-profit organization. Or the organization may have | | | | are: |
| donors who donate services, money, merchandise or | | | | Statement of Financial Position - balances of your |
| grants. In a non-profit organization, therefore, your | | | | assets and liabilities as of a specific date. |
| customers or clients are members, donors or grant | | | | Statement of Financial Income and Expense - reports |
| providers. And your Chart of Accounts would include | | | | how much money brought in versus money spent |
| the accounts Member Dues Receivables, Donor | | | | within a specific period. |
| Receivables and Grant Receivables in the Current | | | | Statement of Functional Expense (990) - Detailed listing |
| Asset section of your Balance Sheet. When a pledge | | | | of expenses within a specific period. |
| for a donation is received you would treat this pledge | | | | Budget vs Actual by Program/Project - Comparison |
| as a donor receivable and when a grant is awarded it | | | | of funds spent to budget plan. |
| would also be posted as a grant receivable. Member | | | | As the bookkeeper for a nonprofit organization you will |
| Receivables would be posted when an invoice is | | | | be responsible for keeping clear and correct records |
| produced billing the member. One important difference | | | | and providing reports which will document the proper |
| in nonprofit bookkeeping is that FASB (The Financial | | | | collection, disbursement, and control of all money |
| Accounting Standards Board) requires nonprofits to | | | | received by the organization within each of its individual |
| break out revenues and expenses for certain activities. | | | | funds. It can be a rewarding experience knowing that |
| Often donations and/or grants have restrictions on | | | | the detailed work you perform is helping your nonprofit |
| how the receipts can be used. Revenues that have | | | | organization to make a difference in so many lives. |