Every day, more than 1.5 million nonprofit organizations perform a variety of charitable and other activities in the United States. Indeed, they constitute a significant percentage of the overall American employment numbers. These days, because of the ravages of the pandemic on the economy, many are facing some significant financial challenges.
An Overview of the Finances of Non-Profits
Non-profits play a huge role in building healthy communities by providing needed services that contribute to economic welfare and stability. Charitable giving accounts for roughly $900 billion of the total U.S. economy. Moreover, more than 38 million people claimed at least one charitable deduction on their federal returns in the 2018 tax year. Along with all that cash comes the responsibility to manage it efficiently and with integrity.
Every non-profit organization needs to keep up with the nuts and bolts of their finances. These include:
- Budgeting
- Funding sources
- Cash flow
- Operating reserves
- Overall financial integrity
- Accounting and transparency with stakeholders and the IRS
Does Your Non-Profit Need Help With Accounting
Perhaps you are heading up or on the board of a non-profit organization. Are you feeling a financial pinch at your non-profit these days? Indeed, if you are, you may be looking for a better way to keep track of dollars, both incoming funds and those that are spent.
A smart way to manage the organization’s finances could very well be with some updated nonprofit accounting systems. Such accounting systems will help you with a variety of accounting concerns such as:
- Software and procedural updating
- Audit assessment and prevention
- Streamlining of finances and methodologies
- Project management and case-study overviews
By working with a competent and trusted accounting advisor, you will quickly be able to get a better handle on the financial condition of your nonprofit organization. Now is a good time to do so.