Accounting For Not-for-Profit Organizations

Name: Accounting For Not-for-Profit Organizations
Rating: 4.2 (37 reviews)

Tool For Accountability and Transparency

Created byLuntadila Paulo, CPA, MBA

Last updated 11/2023

English

What you'll learn

Gain an understanding of the NFP industry landscape
Learn the difference between for-profit vs. NFP organizations
Explore the universe of NFP orgs and how they are organized
Understand how NFP entities life cycle from formation to dissolution, as well as their compliance requirements
Explore the accounting process and cycle for NFP orgs

Course content

5 sections • 29 lectures • 2h 25m total length

Course Introduction3:28
Explore practical lessons on nonprofit financial statements and the vital role of not for profit organizations for leaders and volunteers. Use real life case studies and the form 990.
Learning Objectives and Target Groups3:52
Explore the landscape of not-for-profit organizations, compare for-profit vs not-for-profit, and learn the NFP life cycle, bookkeeping, and financial reporting for executives and board members.
Workbook Walkthrough5:47
Course Files and Additional Resources2:24
Course Overview and Course Resources0:59
Access essential resources for the not-for-profit accounting course, including the Red Cross audited financial statement, Form 990, impact infographic, sector health data Q1 2022, and the course presentation.
Instructor Background0:38

Definitions: What's a NFP Organization?3:56
Define NFP organization and Give 3 examples
NFP vs. For-profit Organizations5:00
Key Stats of the NFP Sector6:17
Exampe of NFP Organizations
Key Players in the NFP Environment4:58
Major Classifications (Groups)6:19
Explore major classifications of not-for-profit organizations, including tax-exempt and taxable groups, the independent sector and mutual benefit, and operating versus non-operating bodies and public charities.
NFP Life Cycle3:24
Explore the life cycle of a not-for-profit from start-up to dissolution, including applying for IRS tax-exemption, annual and state filings, and key events like leadership changes or expansion.
NFP Compliance3:50
ALERT: Fundraising3:47
Explore fundraising in not-for-profit organizations, focusing on compliance with state rules, risk mitigation, and avoiding penalties that can threaten a nonprofit's viability.

Goals of Financial Reporting in NFP Organizations5:55
Recap of General Financial Statements2:45
Learn the general financial statements for not-for-profit organizations. Review the statement of financial position, statement of activities, cash flows, and the functional expenses by program.
Comprehensive Example of Financial Statements with Red Cross8:05
Extra: Bookkeeping & Recordkeeping Tips0:16

Forming a NFP Organization4:44
Accounting Process Simulation7:32
Entries for Initial Operating Expenses8:29
Fundraising Event Entries7:09
Cash Contribution Received and Contribution Receivable Entries6:59
Record cash receipts and a 500,000 contribution receivable for program a, including 150,000 restricted for future tuition and 170,000 unrestricted from small donors.
Additional Operating Expenses and Payables Entries6:30
In October, record professional fees to the recruiting agency, a sign-off bonus as salaries payable, and the new salaries payable liability; adjust cash and prepaid insurance accordingly.
Salary Expenses Payment5:46
December Entries14:59
End of the Year Checks9:02

CLEAN Workbook PDF1:24
Download the clean workbook pdf to follow along with pen-and-paper exercises, practicing accounting for not-for-profit organizations using the course’s pdf workbook content.
SOLVED Workbook PDF0:51
Download the solved workbook pdf for accounting for not-for-profit organizations to review a finished product with all entries, compare results with the course demonstrations, and use it as you go.

Requirements

Basic understanding of general accounting
Basic understanding of accounting software and or Microsoft Excel
Basic knowledge of accounting and tax research

Description

This course provides individuals and organizations insights about the not-for-profit sector and guides them through the accounting process of these organizations. Individuals from various backgrounds would benefit from this course. Not-for-profit leaders, board members, and executives will be empowered to understand their organizations' finances. These in return will allow them to properly make better decisions to continue serving their target communities. Donors and members of the community would benefit from this course as it helps them hold the organizations they love and support accountable as well as assess not-for-profit managers' performance and stewardship of the recourses under their management.

Throughout this course, we lay the building blocks by defining not-for-profit organizations, and how they differ from for-profit organizations. Then, we navigate their life cycle to reviewing key components of financial reports in not-for-profit organizations Furthermore, we expand on our analysis by looking into an actual organization and how they present their financial information to the public.

Lastly, we use a fictitious organization to illustrate the formation and accounting process for a not-for-profit organization. We navigate key transactions, journal entries, and main financial reports. As additional steps, the course presents best practices in the documentation, creation, and organization of accounting records.

Welcome to Not-For-Profit Accounting!

Who this course is for:

Not-for-profit executives and directors, and board members
Not-for-profit accountants, bookkeepers, and advisors
Individuals interested in launching not-for-profit organizations
Not-for-profit donors
Individuals and organizations seeking to hold their favorite NFP organizations accountable

Accounting For Not-for-Profit Organizations

What you'll learn

Explore related topics

Course content

Course Administration6 lectures • 17min

NFP Environment8 lectures • 38min

NFP Bookkeeping & Financial Reporting4 lectures • 17min

Case Study: Great Me NFP9 lectures • 1hr 11min

Final Thoughts & Continuing Education2 lectures • 2min

Requirements

Description

Who this course is for: