A Guide to Nonprofit Accounting

Aug 13, 2021

A Guide to Nonprofit Accounting

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Many accounting classes start with the “lemonade stand” model of business management. You want to sell lemonade, so you work through the process of buying supplies and selling products.

However, running a business becomes more complicated when you leave the private sector to start a nonprofit. Instead of selling lemonade, you’re now trying to collect funds so others can have lemonade. Or you’re selling lemonade to donate funds. 

Nonprofits have their own accounting challenges and requirements, with specific documentation and legal guidelines for what they can accept and what they can do with their money. However, despite their complexity, the basic principles of accounting shine through. Nonprofits with clear records and organized financial categories have better odds of succeeding and bringing positive influence to whatever cause they support.

Learn more about nonprofit bookkeeping and its accounting process to better position your charity to apply for grants, win over big-money donors, and drive change. 

About the Author

Derek Miller

Derek Miller

Derek Miller is a writer specializing in entrepreneurship, small business, and digital marketing. His work has featured in sites like Entrepreneur, GoDaddy, Score.org, and StartupCamp. He’s currently the CMO of Smack Apparel, the content guru at Great.com, and a marketing consultant for small businesses.

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