This guide takes you from nonprofit bookkeeping basics to managing federal grants, payroll, and financial statements. Learn to track donations, create budgets, stay compliant with regulations, and prepare for audits to ensure a healthy financial outlook.

Nonprofit Bookkeeping & Accounting For Dummies

Nonprofit Bookkeeping & Accounting For Dummies

Instructor: Wiley Skills Network
Included with •Learn more
Recommended experience
Recommended experience
What you'll learn
Understand nonprofit bookkeeping and accounting principles
Prepare financial statements and manage grants effectively
Set up payroll accounts and handle payroll taxes
Details to know

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October 2026
24 assignments
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There are 23 modules in this course
This module provides an overview of fundamental concepts in nonprofit bookkeeping and accounting, including financial reporting periods, accounting methods, compliance standards, grant management, and tax obligations. Learners will gain essential knowledge to manage nonprofit finances effectively and ensure regulatory compliance.
What's included
1 video6 readings1 assignment
1 video
- Overview•0 minutes
6 readings•Total 33 minutes
- Introduction•6 minutes
- Picking your accounting method•10 minutes
- Adhering to GAAP and GAAS•4 minutes
- Making Sure Your Books Are Balanced•4 minutes
- Finding Out about Federal Grants•3 minutes
- Paying Federal Taxes•6 minutes
1 assignment•Total 16 minutes
- Foundations of Nonprofit Financial Management•16 minutes
This module introduces learners to the fundamentals of bookkeeping and accounting, focusing on key terms, methods, and internal controls. It covers how to choose the right accounting method, manage assets, and implement safeguards to protect organizational resources. By the end, learners will have a solid foundation in nonprofit financial management.
What's included
1 video5 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
5 readings•Total 28 minutes
- Introduction•4 minutes
- Defining common financial terms•6 minutes
- Choosing Your Accounting Method•5 minutes
- Running Numbers on Your Assets•7 minutes
- Keeping an Eye on Your Assets•6 minutes
1 assignment•Total 16 minutes
- Foundations of Nonprofit Accounting•16 minutes
This module explores the fundamental role of financial statements in nonprofit organizations, focusing on their use in decision-making, financial planning, and accountability. Learners will gain an understanding of key financial documents and how they support organizational transparency and strategic planning.
What's included
1 video5 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
5 readings•Total 25 minutes
- Introduction•5 minutes
- Using the financial statements•4 minutes
- Using Financial Statements to Your Advantage•5 minutes
- Identifying the Financial Statements•6 minutes
- Developing the cash flow statement•5 minutes
1 assignment•Total 16 minutes
- Nonprofit Financial Reporting Fundamentals•16 minutes
This module equips learners with essential knowledge and skills for maintaining accurate accounting records in nonprofit organizations. It covers both manual and digital recordkeeping methods, including system implementation, software evaluation, and security practices. Learners will gain practical insights into transitioning from manual to digital systems and securing financial data.
What's included
1 video6 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
6 readings•Total 28 minutes
- Introduction•4 minutes
- Creating a Manual System•5 minutes
- Using Spreadsheet Programs•4 minutes
- Converting your manual system to a spreadsheet•5 minutes
- Exploring Nonprofit Software Programs•6 minutes
- Limiting user privileges•4 minutes
1 assignment•Total 16 minutes
- Fundamentals of Accounting Recordkeeping•16 minutes
This module provides an in-depth look at the setup and function of a chart of accounts for nonprofit organizations. Learners will gain an understanding of how to structure and label financial accounts, including liabilities and revenue, for accurate financial tracking and reporting.
What's included
1 video3 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
3 readings•Total 19 minutes
- Introduction•6 minutes
- Labeling liabilities•5 minutes
- Recording revenue•8 minutes
1 assignment•Total 16 minutes
- Nonprofit Financial Organization Fundamentals•16 minutes
This module introduces the foundational principles of accounting transactions, including how to record and adjust entries, use debits and credits, and prepare a trial balance. Learners will gain practical skills in maintaining accurate financial records for nonprofit organizations.
What's included
1 video3 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
3 readings•Total 19 minutes
- Introduction•6 minutes
- Stepping Through the Accounting Cycle•6 minutes
- Reaching the trial balance•7 minutes
1 assignment•Total 16 minutes
- Fundamentals of Accounting Transactions•16 minutes
This module teaches learners how to effectively track and manage nonprofit financial transactions using a checkbook register. It covers recording donations, entering expenses, and understanding the importance of balancing accounts to maintain financial accuracy and prevent errors.
What's included
1 video6 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
6 readings•Total 31 minutes
- Introduction•4 minutes
- Tracking Nonprofit Donations•6 minutes
- Entering donations in your register•4 minutes
- Subtracting Your Expenses•7 minutes
- Recording direct or automatic bank drafts•6 minutes
- Considering outstanding checks•4 minutes
1 assignment•Total 16 minutes
- Tracking and Managing Financial Transactions•16 minutes
This module introduces learners to the fundamentals of manual nonprofit bookkeeping, including the use of spreadsheet templates, journal entry analysis, and the process of closing accounts to track net assets. It equips learners with practical skills to manage financial records accurately and transparently without external accounting support.
What's included
1 video4 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
4 readings•Total 21 minutes
- Introduction•7 minutes
- Entering to the sales and purchases journals•4 minutes
- Showing Examples of Common Nonprofit Journal Entries•5 minutes
- Dealing with net assets•5 minutes
1 assignment•Total 16 minutes
- Foundations of Manual Bookkeeping•16 minutes
This module explores the transition from manual accounting practices to using specialized nonprofit accounting software. Learners will gain an understanding of fund accounting, donation tracking, and financial reporting in tools like QuickBooks and Aplos. It also covers the setup and customization of these platforms for nonprofit organizations.
What's included
1 video5 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
5 readings•Total 28 minutes
- Introduction•4 minutes
- Using QuickBooks for Nonprofits•5 minutes
- Providing examples of QuickBooks journals, ledgers, and reports•4 minutes
- Selecting Aplos Fund Accounting Software•7 minutes
- Budgeting by fund or tag•8 minutes
1 assignment•Total 16 minutes
- Nonprofit Accounting Software Fundamentals•16 minutes
This module covers the essential steps for creating and managing an operating budget for nonprofits. Learners will gain skills in setting financial goals, organizing resources, and communicating budget plans effectively. The content emphasizes strategic planning and financial responsibility to support long-term organizational stability.
What's included
1 video6 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
6 readings•Total 28 minutes
- Introduction•4 minutes
- Preparing to Create an Operating Budget•5 minutes
- Making and prioritizing goals•5 minutes
- Staying organized•4 minutes
- Coming Up with an Operating Budget•6 minutes
- Getting your budget approved•4 minutes
1 assignment•Total 16 minutes
- Balancing Cash Flow and Budgeting Strategies•16 minutes
This module provides an in-depth look at federal grant processes, including how to find and apply for grants, manage funds effectively, and meet audit and compliance requirements. Learners will gain practical knowledge on navigating federal funding opportunities and ensuring nonprofit accountability. It equips professionals with the tools to manage grants responsibly and avoid common pitfalls.
What's included
1 video5 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
5 readings•Total 28 minutes
- Introduction•6 minutes
- Finding and applying for federal grants for your nonprofit•6 minutes
- Managing Federal Grant Money•6 minutes
- Understanding audit requirements•6 minutes
- Indicating special conditions•4 minutes
1 assignment•Total 16 minutes
- Federal Grant Fundamentals•16 minutes
This module provides a comprehensive overview of managing federal grants, including tracking funds, understanding obligations, making budget adjustments, and preparing required financial reports. Learners will gain practical knowledge on how to comply with federal regulations and maintain proper accounting practices throughout the grant lifecycle.
What's included
1 video7 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
7 readings•Total 39 minutes
- Introduction•4 minutes
- Understanding Your Obligation•5 minutes
- Making changes to your grant•5 minutes
- Drawing Down Federal Dollars•6 minutes
- Tracking the electronic transfer•4 minutes
- Preparing the required financial status reports•7 minutes
- Explaining other post-award forms•8 minutes
1 assignment•Total 16 minutes
- Federal Grant Management Essentials•16 minutes
This module covers essential strategies for maintaining nonprofit compliance with IRS and state regulations, including understanding financial reporting standards like GAAP and analyzing the impact of the Sarbanes-Oxley Act on nonprofit operations. Learners will gain practical knowledge on adhering to legal requirements and managing financial accountability.
What's included
1 video4 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
4 readings•Total 24 minutes
- Introduction•6 minutes
- Abiding by IRS statutes•5 minutes
- Using GAAP•7 minutes
- Sorting out the Sarbanes–Oxley Act•6 minutes
1 assignment•Total 16 minutes
- Nonprofit Compliance and Financial Accountability•16 minutes
This module provides a comprehensive overview of audit processes, including the types of audits, roles of internal and external auditors, and the steps involved in preparing for and responding to audits. Learners will gain practical knowledge on managing audit expectations, tracking grant expenses, and implementing internal controls to ensure compliance.
What's included
1 video10 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
10 readings•Total 48 minutes
- Introduction•7 minutes
- Introducing internal and external auditors•5 minutes
- Walking Through the Independent Audit Process•3 minutes
- Gathering final evidence and issuing the report•4 minutes
- Identifying the Types of Grant Audits•4 minutes
- Setting up the site visit•3 minutes
- Gearing up for oversight audits•4 minutes
- Getting Ready for the Auditor•5 minutes
- Tracking all grant expenses•5 minutes
- Segregating duties through internal controls•8 minutes
1 assignment•Total 16 minutes
- Audit and Grant Compliance Essentials•16 minutes
This module covers the essential processes of managing payroll for nonprofits, including understanding payroll tax obligations, calculating FICA and federal tax deductions, and correctly filing key forms like 941 and W-2. Learners will gain practical skills in managing payroll systems, handling overtime and cash advances, and ensuring compliance with IRS requirements throughout the year.
What's included
1 video7 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
7 readings•Total 36 minutes
- Introduction•4 minutes
- Deducting the Right Amount of Taxes•4 minutes
- Using Form W-4 as the employer•5 minutes
- Adding in overtime and cash advances•7 minutes
- Paying Quarterly Payroll Taxes with Form 941 and Electronic Funds Transfer•5 minutes
- Filing Form 941•5 minutes
- Completing End-of-Year Forms•6 minutes
1 assignment•Total 16 minutes
- Payroll and Tax Compliance Essentials•16 minutes
This module provides an in-depth understanding of IRS Form 990 and its various versions, helping learners identify which form applies to their nonprofit organization, understand filing requirements, and avoid common mistakes that could lead to penalties.
What's included
1 video4 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
4 readings•Total 22 minutes
- Introduction•6 minutes
- Understanding the Minimal Requirements Using Form 990-N•4 minutes
- Qualifying to Use Form 990-EZ•5 minutes
- Filing with Form 990•7 minutes
1 assignment•Total 16 minutes
- Accounting for Tax Form 990•16 minutes
This module equips learners with the skills to analyze a nonprofit's statement of activities, identify financial risks, and understand how to classify and interpret expenses and revenues. It also covers techniques for comparing financial data over time and against other organizations to support informed decision-making.
What's included
1 video4 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
4 readings•Total 19 minutes
- Introduction•6 minutes
- Recording expense•4 minutes
- Analyzing revenues and expenses•4 minutes
- Using the statement to make comparisons•5 minutes
1 assignment•Total 16 minutes
- Analyzing Financial Statements for Nonprofit Organizations•16 minutes
This module explores the statement of financial position, focusing on how to classify assets and liabilities, interpret financial health through key ratios, and use this information to evaluate a nonprofit's financial standing.
What's included
1 video4 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
4 readings•Total 22 minutes
- Introduction•4 minutes
- Creating the Statement of Financial Position•4 minutes
- Classifying assets•10 minutes
- Evaluating the Numbers•4 minutes
1 assignment•Total 16 minutes
- Financial Position and Reporting Fundamentals•16 minutes
This module teaches how to interpret and analyze the statement of cash flows, a critical financial tool for assessing an organization's liquidity and financial stability. It covers the structure, purpose, and practical applications of cash flow statements, particularly for nonprofits. Learners will gain the ability to evaluate an organization's financial health through cash flow indicators.
What's included
1 video3 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
3 readings•Total 15 minutes
- Introduction•4 minutes
- Understanding How to Create and Use a Statement of Cash Flows•7 minutes
- Analyzing Cash Flow Indicators•4 minutes
1 assignment•Total 16 minutes
- Cash Flow Fundamentals•16 minutes
This module covers the classification of nonprofit expenses by function and nature, the calculation of program spending ratios, and the use of the Statement of Functional Expense to assess financial efficiency. Learners will gain the skills to analyze and interpret financial data to support better decision-making in nonprofit organizations.
What's included
1 video3 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
3 readings•Total 16 minutes
- Introduction•6 minutes
- Allocating expenses•6 minutes
- Using the Statement of Functional Expense to Calculate Ratios•4 minutes
1 assignment•Total 16 minutes
- Nonprofit Financial Reporting and Expense Allocation•16 minutes
This module covers the essential steps in closing a nonprofit's accounting period, including adjusting and reversing entries, preparing financial statements, and finalizing notes to financial disclosures. Learners will gain practical skills in managing financial records and ensuring compliance with accounting standards.
What's included
1 video4 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
4 readings•Total 23 minutes
- Introduction•6 minutes
- Adjusting, Closing, and Reversing Entries•4 minutes
- Finalizing with closing entries•5 minutes
- Completing the Notes to the Financial Statements•8 minutes
1 assignment•Total 16 minutes
- Nonprofit Accounting Fundamentals•16 minutes
This module covers essential accounting practices for nonprofits, including GAAP compliance, documentation, and staying within IRS guidelines. Learners will gain skills in maintaining financial transparency, tracking donor interactions, and ensuring legal compliance in nonprofit operations.
What's included
1 video3 readings1 assignment
1 video•Total 1 minute
- Overview•1 minute
3 readings•Total 12 minutes
- Introduction•4 minutes
- Leaving a Paper Trail•4 minutes
- Staying in Compliance•4 minutes
1 assignment•Total 16 minutes
- Essential Practices for Nonprofit Financial Integrity•16 minutes
This module explores key strategies for maintaining financial accountability, developing effective fundraising techniques, and ensuring transparency to build donor trust and long-term viability for nonprofits.
What's included
1 video2 readings2 assignments
1 video•Total 1 minute
- Overview•1 minute
2 readings•Total 10 minutes
- Introduction•4 minutes
- Exploring New Fundraising Ideas•6 minutes
2 assignments•Total 108 minutes
- Sustaining Nonprofit Organizations•16 minutes
- The Nonprofit Bookkeeping & Accounting For Dummies Final Assessment•92 minutes
Instructor

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JJohn Wiley & Sons
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UUniversity of Illinois Urbana-Champaign
Course
JJohn Wiley & Sons
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