Ten Reasons Why Nonprofits Need True Fund Accounting Instead of a Commercial Accounting System
In today’s world, financial management and accountability are critical for all types of businesses and organizations. For nonprofits, the pressures are mounting: Restrictions around the use of government grants continue to rise, private foundations and corporations are asking organizations for specific measurable outcomes resulting from grant awards and the tightening of federal regulations further increase the demands. Compounded with stories of funding misuse grabbing headlines, the temperament of the donor community, although positive, is more cautious than in previous years. This document is intended to highlight the differences between commercial and fund accounting and outline ten key reasons why your organization may need a true fund accounting system.