Nonprofits view their accounting processes through an accountability lens rather than one based solely on profitability and revenue generation as used by the for-profit world. This is because they reinvest all funds back into their organization and mission. Plus, nonprofits need to allocate their expenses according to various restrictions and stipulations set by their generous contributors. Naturally, these factors mean nonprofits must leverage a number of systems and reports unique to the sector to keep their finances well organized.
When you became a leader at your church, you did so because you felt called by God to help spread the Word and to make a difference in your community. If you already have a background as a CPA, you’re a minority in the leaders in the industry. If you don’t have your CPA, no worries! That’s why we’ve put together this guide, to help church professionals become acquainted with the accounting systems for their institutions.
The COVID-19 virus brought about unprecedented challenges in every industry. For nonprofits with missions that are directly related to the humanitarian crisis (for instance, those who work with healthcare or to address food insecurity), need spiked. For these organizations, the community rose to the challenge and raised more money than ever before. However, this need still outshined the revenue raised at times. And on the other end of the spectrum, most organizations with missions that did not immediately correlate with the pandemic experienced a drop in fundraising revenue outright.
Fundraising is at the heart of any nonprofit’s strategy—not because it’s the most important thing that nonprofits do, but because it enables nonprofits to do the crucial work for their mission through impactful programming. When your nonprofit designs its fundraising strategy, you initially come up with financial goals that relate directly to the philanthropic objectives for the year. Then, you come up with the fundraising ideas and campaigns that will best help you reach those fundraising goals.
The COVID-19 pandemic shut down the world as we knew it. All of a sudden, all of our interactions with other people, companies, and nonprofits were forced to take a 180-degree turn. Many organizations and small businesses closed their doors, doomed to never open them again. Luckily, your organization wasn’t one of those unlucky organizations. You kept your doors open and continued moving forward, potentially even thriving during the pandemic.