Churches & Nonprofits
Fund accounting for mission-driven organizations. Restricted gift tracking, grant compliance, Form 990 preparation, and church payroll handled properly.
The Industry
Nobody starts a church or nonprofit because they love accounting. You started because you care about a mission. Feeding families, supporting youth, serving your congregation, building community. Somewhere along the way, financial management became part of the job. Maybe a board member with some business background volunteered to handle the books. Maybe the pastor’s spouse took it on. Maybe you’re doing it yourself because there’s nobody else.
The accounting itself is different from what businesses deal with. A donation restricted for building improvements can’t be spent on staff salaries even if payroll is due Friday. Grant money has to be tracked separately with documentation for funder reports. Fund accounting means separating money by purpose and proving you spent it correctly. Most small business bookkeepers have never touched fund accounting because it simply doesn’t exist in the for-profit world.
Who This Covers
Who This Covers
Churches, religious organizations, 501(c)(3) nonprofits, charitable organizations, ministries, community foundations. Any mission-driven organization in the Treasure Valley that operates on donations, grants, or member contributions rather than sales revenue.
What Makes It Different
What Makes It Different
Fund accounting separating restricted from unrestricted money. Donor restrictions that legally limit how funds can be spent. Grant compliance with specific reporting requirements. Form 990 preparation for nonprofits. Church payroll with minister housing allowances. Board reporting that non-accountants can actually understand. Tax-exempt status that requires proper documentation to protect.
What We Handle
Fund accounting gets configured so restricted gifts stay separated from general operating money. When someone donates $10,000 specifically for the building fund, that gets tracked in its own fund from day one. Grant expenses get allocated to the correct programs with documentation ready for funder reports. Board-ready financials show program costs, administrative overhead ratios, and fund balances in a format that makes sense to people who aren’t accountants.
Form 990 preparation for nonprofits ensures revenue and expenses are classified accurately and filed on time. Church payroll handles the unique tax situation of clergy including housing allowance calculations and the dual employee-self employed status ministers deal with. As Enrolled Agents, we can represent you directly before the IRS if questions arise about your tax-exempt status or compliance. We understand these organizations operate differently than businesses and set up systems accordingly.
Fund Accounting and Grant Tracking
Fund Accounting and Grant Tracking
Books configured for fund separation from the start. Restricted donations tracked separately from unrestricted operating funds. Grant expenses allocated to correct programs throughout the grant period with documentation for funder reporting. Capital campaign accounting kept distinct from general operations. Fund balance reports available anytime showing exactly what money exists for what purpose.
Compliance and Board Reporting
Compliance and Board Reporting
Form 990 preparation for nonprofits with accurate revenue and expense classification. Church payroll with housing allowance calculations documented properly. Financial reports formatted for board presentations showing metrics that matter to oversight committees and donors. QuickBooks configured for nonprofit chart of accounts and fund tracking.
What Goes Wrong
A volunteer treasurer handles the books the way they handle their business accounting. Everything goes into one account. A donor gives $5,000 restricted for youth ministry and it gets deposited alongside general offerings. Six months later, that money has been spent on utilities and staff because cash was tight. Nobody can prove whether the restricted funds were used appropriately. When the donor asks for an update or the board requests a fund balance report, there’s no clear answer. Trust erodes.
Nonprofits miss Form 990 deadlines or file inaccurately because nobody on staff really understands the requirements. Churches assume that because they’re exempt from filing, they don’t need detailed records. Then an employment audit happens and there’s no documentation distinguishing contractors from employees. The pastor’s housing allowance was never formally designated by the board. A major donor requests financials before making a significant gift and there’s nothing presentable to show. These problems compound over years until fixing them becomes a major project.
Fund Restrictions Ignored
Fund Restrictions Ignored
Restricted gifts commingled with general operating funds because nobody set up proper fund tracking. Grant money spent on unallowable costs without anyone realizing until the funder asks for documentation. Building fund donations used for operations when cash flow gets tight. When auditors or funders ask for restricted fund reporting, it doesn’t exist.
Compliance Gaps and Documentation Failures
Compliance Gaps and Documentation Failures
Form 990 filed late or with classification errors that could trigger IRS scrutiny. Church workers misclassified as contractors when they should be employees creating payroll tax liability. Minister housing allowances not properly designated by board resolution. Financial reports too disorganized for board review or donor requests. No documentation to demonstrate proper fund usage if tax-exempt status gets questioned.
What Changes
Every donation gets tracked by restriction type from the day it arrives. Fund balances are available at any time showing exactly what money exists for what purpose. When a donor asks whether their building fund gift was used appropriately, you have documentation to show them. Grant reports get generated without scrambling because expenses are allocated correctly throughout the grant period rather than reconstructed at reporting time. Board members receive financials they can actually understand with meaningful comparisons to budget and prior periods.
Form 990 gets filed accurately and on time for nonprofits. Church staff gets paid correctly with housing allowances documented and designated through proper board action. Financial statements are ready whenever a major donor requests them or a grant funder requires specific reporting. As Enrolled Agents, we can step in directly if IRS questions arise about your organization. Your focus stays on the mission while we handle the accounting that protects your tax-exempt status and maintains the donor confidence you depend on.
Donor and Board Confidence
Donor and Board Confidence
Clear fund tracking proves restricted gifts are used as donors intended. Board packages show program costs, overhead ratios, and cash position in accessible format. Grant reports completed easily because allocation happens throughout the year. Financials you’re proud to share with anyone who asks. The transparency that builds long-term donor relationships and board trust.
Protected Status and Mission Focus
Protected Status and Mission Focus
Tax-exempt compliance maintained through proper documentation and accurate filings. Payroll handled correctly for churches with unique minister tax situations. Enrolled Agent representation available if IRS questions arise about your organization. Less time worrying about whether the books are right means more energy for the work that actually matters to you and the people you serve.
The Treasure Valley's Tax and Accounting Team
The Next Step:
A Short Conversation
Tell us what you're dealing with. We'll listen, answer your questions, and give you a straightforward quote.
