Non-Profit Accounting

Non-profit accounting is the process of managing financial information for organizations that operate for a social cause rather than to make a profit. It focuses on tracking funding sources, expenses, and grants to ensure transparency and accountability. Non-profits must show how they use donations and resources to achieve their mission, often reporting on various programs separately. Unlike for-profits, non-profits utilize a fund accounting system to separate different funding streams, ensuring that funds are used appropriately. This specialized accounting helps non-profits maintain trust with donors and comply with legal requirements.