Experience Serving Nonprofit Organizations
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Nonprofit organizations are created for many different reasons, but they all have one thing in common: they exist to serve a mission rather than generate profits for owners. Some focus on education, some preserve history, some serve communities, some support healthcare initiatives, and others provide services to children, families, and individuals who may not otherwise have access to those resources.
Over the years, I have worked with a variety of nonprofit organizations, including Montessori schools, educational organizations, historical and cultural organizations, community-based nonprofits, and healthcare-related organizations. Each nonprofit is different, but the accounting and tax issues tend to become more complex as the organization grows. A small nonprofit may begin with a volunteer board, limited activity, and a simple Form 990-N filing. Over time, that same organization may receive grants, hire employees, enter into leases, purchase equipment, expand its programs, and begin working with foundations, government agencies, schools, hospitals, or other community partners. At that point, the accounting and reporting requirements change significantly. That is where having an experienced CPA who understands nonprofit organizations can become important. Growing Nonprofit Organizations Many of the nonprofit organizations I work with are in a period of growth or transition. A Montessori school may begin with a small student population and gradually expand into multiple classrooms, additional campuses, grant-funded programs, and larger payroll and facility obligations. Historical societies and cultural organizations may begin with volunteers and donations but later receive grants, maintain collections or properties, operate events, and become responsible for more formal financial reporting. Healthcare and medical nonprofits can face similar challenges. An organization focused on diabetes prevention, public health, community education, or medical outreach may receive grants from hospitals, foundations, corporations, or government agencies. Those funds often need to be tracked by program, grant, or funding source, and the organization must be able to explain how the money was spent. As nonprofit organizations grow, their accounting systems need to grow with them. Form 990 Preparation For many nonprofit organizations, Form 990 is the most important annual tax filing. It is more than a tax return. Form 990 provides the IRS, donors, foundations, regulators, and the general public with information about the organization’s mission, programs, finances, governance, compensation, fundraising, and use of resources. I prepare Form 990, Form 990-EZ, Form 990-PF, and related schedules for nonprofit organizations. The Form 990 process may include reviewing:
Functional Expense Reporting One area that often causes difficulty for nonprofit organizations is functional expense reporting. Expenses generally need to be separated among:
For example, the salary of an employee who works partly on programs and partly on administration may need to be allocated. Rent, technology, insurance, travel, professional services, and marketing expenses may also need to be divided among different functions. I work with nonprofit management and accounting personnel to understand how the organization operates and develop reasonable classifications that support the Form 990 and financial statements. Grant-Funded Nonprofits Grant-funded organizations often require a higher level of financial tracking. A nonprofit may receive separate grants for education, outreach, healthcare, community programs, research, or other activities. Each grant may have its own budget, reporting requirements, restrictions, and reporting period. I can assist organizations with:
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National Braille Press – A Boston-based nonprofit that promotes literacy and independence by producing braille books and accessible materials for blind and visually impaired children and adults.
Montessori education and nonprofit schools — supporting organizations focused on children, families, and learning.
Museum of Fine Arts, Boston
SPCA-Angell – A Massachusetts-based nonprofit dedicated to animal welfare
Isabella Stewart Gardner Museum
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National Shrine of Our Lady La Salette - Attleboro, MA
Montessori and Educational Organizations
Montessori schools and other educational nonprofits have their own unique accounting issues. These organizations may receive tuition, grants, donations, fundraising revenue, and other program income. They may also have prepaid tuition, security deposits, payroll, employee benefits, facility costs, and capital projects.
I have experience working with Montessori schools and educational organizations on nonprofit tax filings, financial statement reviews, audits, compilations, and accounting matters. For schools, the CPA relationship often goes beyond simply preparing the annual return. Management and boards may need help understanding financial results, planning for future expenditures, evaluating cash flow, and meeting reporting requirements from lenders, foundations, or regulators.
Historical Societies and Cultural Organizations
Historical societies, museums, cultural organizations, and other mission-driven nonprofits also face specialized accounting and reporting issues.
These organizations may own or maintain historic property, receive restricted donations, hold collections, conduct fundraising events, receive grants, or rely heavily on volunteers. Their financial activity may be very different from a traditional business, which means the accounting and tax reporting must reflect the actual mission and activities of the organization. I work with management and boards to help ensure that financial reporting and tax compliance support the organization’s long-term mission.
Montessori schools and other educational nonprofits have their own unique accounting issues. These organizations may receive tuition, grants, donations, fundraising revenue, and other program income. They may also have prepaid tuition, security deposits, payroll, employee benefits, facility costs, and capital projects.
I have experience working with Montessori schools and educational organizations on nonprofit tax filings, financial statement reviews, audits, compilations, and accounting matters. For schools, the CPA relationship often goes beyond simply preparing the annual return. Management and boards may need help understanding financial results, planning for future expenditures, evaluating cash flow, and meeting reporting requirements from lenders, foundations, or regulators.
Historical Societies and Cultural Organizations
Historical societies, museums, cultural organizations, and other mission-driven nonprofits also face specialized accounting and reporting issues.
These organizations may own or maintain historic property, receive restricted donations, hold collections, conduct fundraising events, receive grants, or rely heavily on volunteers. Their financial activity may be very different from a traditional business, which means the accounting and tax reporting must reflect the actual mission and activities of the organization. I work with management and boards to help ensure that financial reporting and tax compliance support the organization’s long-term mission.
Healthcare and Medical Nonprofits
Healthcare-related nonprofit organizations may serve individuals and families through education, prevention, outreach, screening, or community health programs.
Organizations focused on areas such as diabetes prevention, public health, or community wellness may work with hospitals, medical providers, universities, foundations, and government agencies.
These organizations often have multiple funding sources and may need to track expenses by program, grant, or initiative.
Accurate accounting and Form 990 reporting are particularly important because donors and grantors want to understand how funds are being used and how much of the organization’s resources are devoted directly to its mission.
Financial Statement Services
Some nonprofit organizations require more than a tax return.
Depending on the organization’s size, funding sources, grant agreements, banking relationships, or state requirements, it may need financial statements prepared by a CPA.
I provide nonprofit financial statement services including:
Healthcare-related nonprofit organizations may serve individuals and families through education, prevention, outreach, screening, or community health programs.
Organizations focused on areas such as diabetes prevention, public health, or community wellness may work with hospitals, medical providers, universities, foundations, and government agencies.
These organizations often have multiple funding sources and may need to track expenses by program, grant, or initiative.
Accurate accounting and Form 990 reporting are particularly important because donors and grantors want to understand how funds are being used and how much of the organization’s resources are devoted directly to its mission.
Financial Statement Services
Some nonprofit organizations require more than a tax return.
Depending on the organization’s size, funding sources, grant agreements, banking relationships, or state requirements, it may need financial statements prepared by a CPA.
I provide nonprofit financial statement services including:
- Compilations
- Reviews
- Audits
- Financial statement preparation
- GAAP financial statements
- Cash basis and modified cash basis statements
- Statement of financial position
- Statement of activities
- Statement of functional expenses
- Statement of cash flows
- Financial statement footnotes