Nonprofit Bookkeeping & Accounting For Dummies, 2nd Edition

Chapter 22

Ten Important Things to Know When Keeping a Nonprofit’s Books

IN THIS CHAPTER

Safeguarding your assets

Documenting donations

Getting help

As the executive director or manager of a nonprofit, your job is to make sure your organization’s books are in order. You want to make sure your staff follows the guidelines set in the generally accepted accounting principles (GAAP). You also want to verify that you and your staff are following these guidelines through detailed documentation.

This chapter reviews the ten most important things you need to know when keeping your nonprofit’s books. Ignoring any of these items can negatively impact your nonprofit’s books and the success or future of your organization.

Monitoring Cash Contributions

Cash is the most liquid asset. Due to its nature, it is inherently risky and sometimes hard to track after you exchange or receive it. To prevent any potential problems, your organization needs to have an in-house policy that describes how to receive and handle cash.

Factoring in frequency of occurrence, you should deposit cash donations on a regular basis so that any time lags in deposit dates are obvious. For example, maybe your nonprofit ...