7 min
Nonprofit Finance Basics: Fund Accounting Essentials The Nonprofit Bookkeeper
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- Non-Profit
In this episode, your host, Aishat delves into the topic of fund accounting for non-profits, emphasizing the importance of recording income and expenditure by fund.
Using the scenario of a new company receiving income from various sources, Aishat explains the concept of fund accounting and the classifications of funds. She distinguishes between restricted and unrestricted funds, and also discusses designated funds or reserves.
KEY TAKEAWAYS
Fund accounting treats each source of income as a separate pot of money.Restricted funds come with specific requirements and limitations on how the money can be spent, while unrestricted funds have no such restrictions.Designated funds or reserves are unrestricted funds set aside for a specific purpose in the future, providing flexibility for non-profit organizations.BEST MOMENTS
“… specifications as to how the funds could be spent are deemed to be restrictions on the fund.”
“… restricted funds are any donations or grants that come with restrictions attached to it.”
“… Unrestricted funds are the opposite of restricted funds.”
ABOUT YOUR HOST
Aishat operates her own bookkeeping and accounting services practice – BAnC Services which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector.
With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission.
Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums". She also champions financial literacy among young black adults and thrives in discussions about money management.
Work with Aishat: www.bancservices.co.uk
CONNECT
https://www.instagram.com/npbookkeeper/
https://www.tiktok.com/@npbookkeeper?lang=en
In this episode, your host, Aishat delves into the topic of fund accounting for non-profits, emphasizing the importance of recording income and expenditure by fund.
Using the scenario of a new company receiving income from various sources, Aishat explains the concept of fund accounting and the classifications of funds. She distinguishes between restricted and unrestricted funds, and also discusses designated funds or reserves.
KEY TAKEAWAYS
Fund accounting treats each source of income as a separate pot of money.Restricted funds come with specific requirements and limitations on how the money can be spent, while unrestricted funds have no such restrictions.Designated funds or reserves are unrestricted funds set aside for a specific purpose in the future, providing flexibility for non-profit organizations.BEST MOMENTS
“… specifications as to how the funds could be spent are deemed to be restrictions on the fund.”
“… restricted funds are any donations or grants that come with restrictions attached to it.”
“… Unrestricted funds are the opposite of restricted funds.”
ABOUT YOUR HOST
Aishat operates her own bookkeeping and accounting services practice – BAnC Services which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector.
With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission.
Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums". She also champions financial literacy among young black adults and thrives in discussions about money management.
Work with Aishat: www.bancservices.co.uk
CONNECT
https://www.instagram.com/npbookkeeper/
https://www.tiktok.com/@npbookkeeper?lang=en
7 min