Non-Profits: Operations and Accounting - An Overview
This course provides a detailed overview of major nonprofit areas for the finance professional or board member. This course is a great resource for any new controller, manager, board member, or CFO working in the nonprofit sector. Maybe you have questions regarding operations or specific accounting issues, such as:
  • Is the nonprofit tax-exempt?
  • What are “funds” or “net assets”?
  • What is a “release of net assets”?
  • What is a Statement of Position?
  • What is a Statement of Activities?
  • ASC what?
  • What are grant costs about?
This course will answer these questions and others you may have in the back of your mind in regards to the nonprofit sector. Some chapters are more technical than others, so if you are not accounting-oriented, you may still understand the concepts. Additionally, terminology and vocabulary are explained with numerous examples to clarify typical nonprofit models of operation, taxes, and financial reporting.

Examples of letters, forms, and reports pertinent to the nonprofit world are presented along with vignettes of my own experiences and recommendations, giving the material a different perspective than a purely academic or technical approach.

Each chapter covers an important topic within the nonprofit world, combining theory and practical information to make the issues clear and simple.

The material is based on IRS, Financial Accounting Standards Board (FASB), and other government publications, including the “Super Circular,” the new federal grant guide. Please note that, like everything in life, things change, and you must keep up with the modifications in the law and accounting regulations.

Course Publication Date: June 20, 2017

This course is available with NO ADDITIONAL FEE if you have an active self study membership or can be purchased for $90.00!

Author:Sheila Shanker
Course No:ACT-NONPROFIT-9037
Recommended CPE:9.00
Delivery Method:QAS Self Study
Level of Knowledge:Overview
Advanced Preparation:None
Recommended Field of Study:Accounting
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Learning Objectives
  • Identify the characteristics commonly found with nonprofit organizations.
  • Outline the steps necessary for an entity to obtain nonprofit status.
  • Understand the use of Form 1023.
  • Recognize what a 501(3)c tax exemption represents.
  • Identify and understand what an IRS “determination letter”.
  • List the three main operational areas of a nonprofit organization.
  • Understand the functions and responsibilities within the Programs.
  • Define GAAP.
  • Distinguish between cash versus accrual basis of accounting.
  • Define fund.
  • List the main fund.
  • Describe the unrestricted net asset.
  • Identify the temporarily restricted net asset.
  • Outline the permanently restricted net asset.
  • Classify transactions among the basic funds.
  • Identify “Release of net assets” accounts and explain usage.
  • Recognize the chart of account of a nonprofit.
  • List the types of revenues.
  • State the accounting treatment for cash, checks and credit card donations.
  • State how to handle stock donations in accounting.
  • Describe how to account for pledges.
  • State fundraising activities and how to account for them.
  • List the requirements for revenue to be classified as unrestricted, temporarily restricted, or permanently restricted.
  • Describe the IRS receipt requirements.
  • Identify the accounting treatment in-kind contributions and museum pieces.
  • Describe split interest agreements.
  • Understand components making up the “Super OMB Circular”, also known as “Omni Circular”.
  • List essential elements associated with grant management.
  • Identify direct and indirect costs in a nonprofit entity.
  • Recognize the basics of indirect cost rates.
  • Describe some of the steps involved in a grant audits.
  • Understand and identify the functions of the main financial statements of a nonprofit: Statement of Financial Position, Statement of Activities., and Statement of Cash Flows.
  • Identify the basic formulas underlying these financial statements.
  • List basic accounts presented in these financial statements.
  • Understand how management and potential donors analyze the financial statements of nonprofit organization.
  • Identify federal tax filing requirements of a nonprofit organizations including Form 990.
  • Recognize sales and payroll tax issues of nonprofits.
  • Understand what “unrelated business income tax” is and its impact on a nonprofit organization.
  • Understand some common internal control practices including “segregation of duties”.
  • Identify the role policies and procedures have in a nonprofit organization.
  • Identify the risks and related internal controls associated with: Cash, Accounts Payable, Payroll, and Information Systems.
  • Describe the budgeting process for a nonprofit entity.
  • Define joint costs in a nonprofit entity.
  • Identify the risks of a nonprofit losing its 501(c)(3) tax exempt status.
  • Identify the risk with associated with donor “pledges”.
  • Identify human resources issues within a nonprofit organization.

CPE Depot Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website:

Sponsor Number: 109423


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