Nonprofit Fund Accounting

Nonprofit fund accounting is a method used by nonprofit organizations to track and manage their finances. Unlike traditional accounting, it organizes funds into separate categories based on their purpose, such as donations for specific programs or general operations. This helps ensure that money is spent according to donor restrictions and organizational goals. Each fund is treated as its own entity, providing clear visibility into financial health and accountability. This system helps nonprofits report accurately to stakeholders, maintain transparency, and effectively manage resources to fulfill their missions.