Nonprofit Finance: A Practical Guide
This course provides a detailed overview of the major nonprofit areas for persons interested in the financial operations of an organization, such as financial statements, accounting, grant management, internal controls and tax issues.

I recommend this publication as a useful, practical 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?
This course answers these questions and others you may have in the back of your mind regarding the nonprofit sector. Some chapters are more technical than others are, so if you’re not accounting-oriented, you may still understand the concepts as terms and vocabulary are explained with numerous examples to clarify typical nonprofit models of operation, taxes, and financial reporting.

Course Publication Date: October 04, 2017

This course is available with NO ADDITIONAL FEE if you have an active self study membership or can be purchased for $95.00!

Author:Sheila Shanker
Course No:ACT-NONPROFIT-90337
Recommended CPE:9.50
Delivery Method:QAS Self Study
Level of Knowledge:Overview
Advanced Preparation:None
Recommended Field of Study:Accounting
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Learning Objectives
  • Describe what a nonprofit entity is.
  • Outline the steps for an entity to achieve nonprofit status.
  • Identify a Form 1023.
  • Recognize the benefits of a 501(3)c tax exemption.
  • Identify the components of a determination letter.
  • List the three main operational areas of a nonprofit organization.
  • Categorize nonprofit processes by areas.
  • Differentiate between different program areas including the management, general and fundraising area.
  • Distinguish between cash versus accrual basis of accounting.
  • List the main net assets types in a nonprofit entity.
  • Describe what net assets without donor restrictions are.
  • Identify temporarily restricted net assets as part of the net assets with donor restrictions.
  • Identify permanently restricted net assets as part of the net assets with donor restrictions.
  • Classify transactions among the basic funds/net assets.
  • Identify “Release of net assets” accounts and explain usage of such accounts.
  • Recognize the chart of account of a nonprofit entity.
  • List the types of revenues associated with a nonprofit entity.
  • Differentiate between a contribution and an exchange.
  • Recall the accounting treatment for cash, checks and credit card donations.
  • Recall how to handle stock donations in accounting.
  • Describe how to account for pledges within a nonprofit entity.
  • State fundraising activities and how to account for them.
  • List the requirements for revenue to be classified as without donor restrictions.
  • List the requirements for revenue to be classified as with donor restrictions.
  • Describe the IRS receipt requirements for nonprofit entities.
  • Identify the accounting treatment of in-kind contributions and museum pieces.
  • Describe elements in connection with split interest agreements.
  • List essential grant management topics.
  • Identify direct and indirect costs of a non profit entity.
  • Recognize the basics of indirect cost rates.
  • Describe grant audits and their role in non profit entities.
  • List the main financial statements of a nonprofit entity.
  • Outline the Statement of Position.
  • Recognize the Statement of Activities.
  • Identify the Statement of Cash Flows.
  • Identify the functions of each financial statement.
  • Identify the basic formulas and accounts which comprise nonprofit entity financial statements.
  • Identify the analysis of nonprofits’ financial statement.
  • Identify basic tax returns of a nonprofit entity.
  • Recognize sales and payroll tax issues associated with nonprofit entities.
  • Recall the elements of Form 990.
  • List IRS filing requirements associated with nonprofit entities.
  • Identify when “unrelated business income tax” is applicable.
  • List basic internal control concepts, including segregation of duties and policies and procedures associated with nonprofit entities.
  • Identify risks and controls for cash, receivables, and revenues.
  • Outline risks and controls for accounts payable and expenses.
  • State risks and controls for payroll.
  • Identify risks and controls for information systems.
  • Identify elements specific to accounting for leases.
  • Describe the budgeting process of a nonprofit entity.
  • State risks associated with a nonprofit entity losing its tax exemptions.
  • Outline the nonprofit’s risk in connection with pledges.
  • Identify human resource issues attributable to nonprofit entities.

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:

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