Bookkeeping for nonprofits, by fund, program and grant
We code every gift, bill and payroll entry to its fund, program and grant, so restricted money stays separate and your CPA gets functional expense detail ready for Form 990 and any audit or review.
- Restricted money gets blended
- A donor-restricted gift lands in general income, gets spent on rent, and nobody notices until the auditor asks where it went.
- Grant reports that drift
- The funder report is rebuilt in a spreadsheet each quarter, and the numbers never quite match the general ledger or the grant budget.
The books
What makes nonprofit books different
Nonprofit books answer to donors, funders, the board and the IRS at once, so every entry needs a fund, a program and a function.
| Area | What it involves | What the team does |
|---|---|---|
| Donor restrictions | Gifts with a purpose or time restriction are reported separately from unrestricted money and released only when the restriction is met, under FASB's nonprofit standard. | Code each gift to the restriction your team records, and book releases as the restricted spending happens. |
| Grant tracking | Each grant has its own budget, allowable costs and reporting dates, and federal awards add the Uniform Guidance recordkeeping rules. | Tag costs to their grants, prepare budget-to-actual before each report, and send allowability questions to your finance lead. |
| Functional expense allocation | Expenses are split across program services, management and general, and fundraising, with shared costs like rent allocated by a documented method. | Apply your CPA-approved allocation method each month, so Form 990 detail stays current. |
| Donor gift recording | Gifts in the donor CRM must match the ledger, and donors need written acknowledgments that meet IRS Publication 1771 for larger single gifts. | Reconcile CRM gifts to deposits and flag acknowledgments your team still needs to send. |
| In-kind gifts | Donated goods, space and qualifying services are recorded at fair value and shown separately from cash gifts, with valuation evidence kept on file. | Record in-kind gifts from your documentation and hold valuation questions for your CPA. |
| Payroll across programs | Staff who work across programs and grants need payroll split by timesheet or effort report, so each grant carries its real share. | Post payroll journal entries by program and grant from your approved timesheets. |
What the Velorus team handles
- Recording gifts, grants and deposits by fund and program
- Reconciling donor CRM gifts to bank deposits every week
- Accounts payable coded to program, grant and function
- Bank, card and payment processor reconciliations
- Payroll journal entries split by program and grant
- Booking releases of restricted net assets as restrictions are met
- Grant budget-to-actual schedules before each funder report
- Month-end close with statements for the finance committee
What stays with you and your CPA
- Preparing and filing Form 990, with your CPA and an authorized officer
- The annual audit or review, performed by your independent CPA
- Allocation methods, restriction judgments and gift valuations, set with your CPA
- Approving payments, signing grant reports and board financial decisions
- Tax advice, including unrelated business income questions, from your tax professional
- QuickBooks Online
- Aplos
- Sage Intacct
- Blackbaud Financial Edge NXT
- Bloomerang
- DonorPerfect
We work inside your accounting system and donor CRM with the logins you provide, using the classes, funds or dimensions you and your CPA already have set up.
Want the books closed on schedule every month?
Tell us where your books stand and which software you use. We will come back with the team, the close calendar we would start from, and what the first month looks like.
The calendar
Your month, closed
- Every week
-
Gifts, bills and deposits posted
We record gifts and deposits by fund, match CRM gift batches to the bank, and code bills to program, grant and function.
- Month end
-
Close with restrictions released
We reconcile every account, post payroll allocations, release restricted funds that were spent, and send statements by fund and program to the finance committee.
- Each grant period
-
Budget-to-actual ready for funders
Before each funder report, we prepare budget-to-actual by grant from the ledger, so your program lead writes the narrative against the books.
- Year end
-
Audit and Form 990 support
We prepare the schedules, reconciliations and functional expense detail your CPA asks for, and answer auditor questions on the entries we made.
Every week
What your weekly report tracks.
A named Velorus manager reviews the work against the standard you signed off, and sends you one report.
-
Restricted balances by fund
Shows what donor-restricted money is still unspent, so it is not used for general costs by mistake.
-
Grant spending against budget
Flags grants running under or over budget while there is still time to adjust before the report is due.
-
Unreconciled gifts and deposits
Lists CRM gifts without a matching deposit, and deposits without a donor record, so neither side drifts.
-
Acknowledgments still owed
Lists recorded gifts that may still need a donor acknowledgment letter, so your development team can send them promptly.
Your options
A managed team, compared.
| Velorus managed team | In-house bookkeeper | Bookkeeping firm | |
|---|---|---|---|
| Grant and fund tracking | A managed team codes every entry by fund and grant, reviewed weekly. | Strong when the bookkeeper knows fund accounting; leave or turnover can open gaps. | Many specialize in nonprofits; work is often done on a monthly or quarterly cycle. |
| Who does the work | Trained specialists under a named Velorus manager | One employee you hire and manage | Staff the firm assigns, which can change |
| When someone is out | The team covers and the close stays on schedule | The work waits, or you cover it | Depends on the firm |
| Reporting | A weekly report plus the monthly close package | Whatever you set up | Monthly statements, depending on the package |
Questions
What nonprofits ask first.
What does bookkeeping for nonprofits include with Velorus?
We record gifts, grants and bills by fund, program and function, reconcile bank, card and donor CRM activity, post payroll journal entries split by program, book releases of restricted funds, and close each month with statements by fund and program. A named Velorus manager reviews the work every week against the standard agreed at scoping, and you get a weekly report.
Do you prepare or sign our Form 990 or handle our audit?
No. Your CPA or tax preparer prepares Form 990 and an officer of your organization signs it, and your independent CPA performs any audit or review. We keep the books and functional expense detail those depend on, prepare the schedules they request, and answer their questions about entries we posted. We do not give tax or legal advice.
We use QuickBooks Online, not fund accounting software. Can you track restrictions?
Yes. Nonprofits on QuickBooks Online commonly track programs and functions with classes, grants with projects, customers or locations, and restricted funds with separate net asset accounts. We work in the structure you and your CPA have set up, with the logins you provide. If it cannot produce the reports your funders need, we flag it and your CPA decides what to change.
Where is the team based and what hours do they work?
Your specialists are based in the Philippines and work US hours, so they are online while your finance and development staff are working, and gift batches, bills and coding questions can go to them during your business day.
Books your auditor and funders can rely on
Tell us how you track funds, grants and donors today, and which software you use. We will map what the team would take on. Book a call.