Generally Accepted Accounting Principles (GAAP) are the standard framework of guidelines for financial accounting used in the United States. Established by the Financial Accounting Standards Board (FASB), GAAP ensures consistency, transparency, and comparability in financial reporting across organizations and industries. Whether you’re a nonprofit, a startup, or a large corporation, understanding GAAP is essential for…

An IRS Determination Letter is the official written recognition from the Internal Revenue Service that your organization qualifies as tax-exempt under section 501(c)(3) (or another applicable section) of the Internal Revenue Code. This letter confirms: ✅ Your nonprofit’s tax-exempt status ✅ Donations to your organization may be tax-deductible ✅ You can access certain grants and…

The Financial Accounting Standards Board (FASB) is an independent, private-sector organization that establishes and improves accounting standards for entities that operate in the United States. Its mission is to ensure that financial reporting provides useful, clear, and consistent information to investors, donors, creditors, and other stakeholders. For nonprofits, FASB is the authority that defines how…

Donor-restricted contributions are gifts or donations made to a nonprofit organization with specific instructions or limitations on how the funds can be used. These restrictions are set by the donor at the time the gift is made and must be honored by the organization. For example, a donor may specify that their $10,000 contribution be…

Making a charitable donation is one of the most fulfilling things you can do — for both your community and your finances! When you donate to a qualified nonprofit, you might be eligible to claim a tax deduction, reducing your taxable income and lowering the amount of taxes you owe. In this guide, we’ll walk…

In the world of nonprofit finance, organization is everything. A Chart of Accounts (COA) acts as the blueprint for your accounting system, categorizing each transaction so you always know where your money is coming from and how it’s being used. Whether you’re applying for grants, preparing for an audit, or managing internal budgets, a well-structured…