Nonprofit Accounting
Learn how NGOs, charities, and other nonprofit organisations maintain accounts — covering fund accounting, donations, grants, restricted funds, and special financial statements.
Course overview
Nonprofit Accounting (also called Not-for-Profit Accounting) is designed for organisations that exist for social, educational, religious, or charitable purposes rather than for making profit. It focuses on accountability to donors and proper use of funds.
- Understand the differences between nonprofit and for-profit accounting
- Apply fund accounting principles
- Prepare Receipts & Payments Account, Income & Expenditure Account, and Balance Sheet
- Account for subscriptions, donations, grants, legacies, and endowments
- Handle restricted and unrestricted funds
- Manage fundraising, project-wise accounting, and donor reporting
- Understand FCRA, tax compliance, and audit requirements for NGOs
Course chapters
Follow the chapters in a logical order for the best learning experience.
Introduction to Nonprofit Accounting
Understand the meaning, nature, and special features of nonprofit accounting.
Types of Nonprofit Organizations
Learn about different forms of nonprofit organisations (societies, trusts, Section 8 companies, etc.).
Nonprofit vs For-Profit Accounting
Compare the key differences between nonprofit and commercial accounting.
Fund Accounting Basics
Understand the concept and principles of fund accounting.
Receipts and Payments Account
Prepare the Receipts and Payments Account — a summary of cash transactions.
Income and Expenditure Account
Prepare the Income and Expenditure Account on accrual basis.
Nonprofit Balance Sheet
Prepare the Balance Sheet of a nonprofit organisation.
Capital and Revenue Receipts
Distinguish between capital and revenue receipts in nonprofit organisations.
Subscription Accounting
Account for subscriptions including outstanding and advance subscriptions.
Donation Accounting
Record different types of donations received by nonprofit organisations.
Specific and General Donations
Differentiate and account for specific (restricted) and general donations.
Grants and Grant Accounting
Account for government and private grants received by NGOs.
Membership Fees and Subscriptions
Handle membership fees and recurring subscriptions.
Entrance Fees and Life Membership
Account for entrance fees and life membership fees.
Legacy and Endowment Accounting
Record legacies and endowment funds properly.
Restricted and Unrestricted Funds
Understand and manage restricted vs unrestricted funds.
Fundraising Income and Expenses
Account for income and expenses related to fundraising activities.
Charity Event Accounting
Record income and expenses of charity events and campaigns.
NGO Expense Allocation
Allocate expenses between programme, administrative, and fundraising costs.
Project-wise Accounting
Maintain separate accounts for different projects and programmes.
Donor Reporting
Prepare utilisation certificates and reports for donors.
Budgeting for Nonprofits
Prepare budgets suitable for nonprofit organisations.
Cash Flow Management for NGOs
Manage cash flows effectively in a nonprofit environment.
Asset and Depreciation Accounting
Account for fixed assets and depreciation in nonprofits.
Volunteer and In-kind Contributions
Recognise and value volunteer services and in-kind donations.
Internal Controls for Nonprofits
Implement strong internal controls to safeguard funds and assets.
Nonprofit Audit and Compliance
Understand audit requirements and compliance obligations for NGOs.
Foreign Donations and FCRA Basics
Learn the basics of FCRA and accounting for foreign contributions.
Tax Compliance for NGOs
Understand tax exemptions, 12A/80G registrations, and related compliance.
Nonprofit Financial Reporting
Prepare financial reports suitable for boards, donors, and regulators.
Nonprofit Accounting Practical Problems
Solve practical problems on preparation of nonprofit financial statements.
Nonprofit Accounting Case Studies
Analyse real-world nonprofit accounting case studies.
Nonprofit Accounting MCQs
Test your knowledge with multiple-choice questions.
Recommended learning approach
Start with the basics of fund accounting and financial statements, then move to specific receipts (donations, grants, subscriptions), restricted funds, and finally compliance topics.