Monthly Archives

December 2013

Nonprofit Accounting is Not a Luxury, It’s a Necessity

By | MIP Fund Accounting, Nonprofit | No Comments

iStock_000019130036XSmallIf you’ve ever run a nonprofit, or contributed to one, you know that many of these organizations rely on the contributions of the public. There are countless drives, fundraisers and initiatives created in order to bring more money in to keep the nonprofit afloat, allowing it to continuously provide services to the public. In order to keep tabs of these contributions, Nonprofit Accounting is not only a luxury, it is an absolute necessity.

The nonprofits that are taken seriously are the ones that keep proper books. By taking advantage of sophisticated accounting software, it becomes easier to maintain nonprofit accreditation, give contributors an accurate account of their donation and move forward with initiatives, knowing fully what money you have to work with. You can receive these accounting practices through the use of companies and software that cater to people who run these nonprofits.

Whether you run a community action program or a research organization, provide service to the homeless and the hungry or healthcare clinic, accounting should be at the forefront of your priorities. Leverage technology and sound accounting practices and  you’ll be able to keep track of every dime that comes in and out of your organization, which, in turn, will allow you the opportunity to fulfill your mission and serve your constituents.

In order to maintain the trust to the public, nonprofits must be run with organization and proper bookkeeping, so leaving these tasks to professionals can go a long way in that regard. Anyone interested in these services should take responsibility.


Ten Do’s and Don’ts of Grant Management

By | Grant Management | No Comments

Nr. 10When it comes to grant management, there is a lot to get right, and perhaps just as much to get wrong. Here are some do’s and don’ts to follow in order to ensure your grant management plan remains focused and effective.


  • Perform your research ahead of time in order to ensure you know what the reporting requirements are as well as some basic information about the agency providing the grant.
  • Write your grant proposal carefully, paying special attention to the executive summary portion, as it is often the first part of the document that is read. Take care when crafting your problem statement, but don’t make it sound so negative that the person reading your proposal assumes there is no hope whatsoever.
  • Pay special attention to grant guidelines in order to ensure you comply with all of them. Failing to follow instructions to the letter can result in your grant being denied.
  • Choose your targets carefully, and do not invest a great deal of time submitting proposals that are unlikely to be considered by the funder.


  • Submit proposals late or fail to provide the requested documentation within the specified timeframe.
  • Fail to keep everyone who needs to be involved in the process up to date with reporting requirements.
  • Forget to find out what requirements you will be asked to fulfill if awarded a particular grant, as your work isn’t necessarily done once you receive the money.
  • Be negligent at keeping up with deadlines. In fact, you should keep track of them on a calendar or by using grant management software whenever possible.
  • Wait until the last minute to gather the necessary information, as writing a grant proposal can be rather time consuming.
  • Fail to follow up with the funding agency to ensure all necessary paperwork has been received or to check on the approval process.

By following these dos and don’ts for grant management, you will be going a long way toward helping ensure the success of your non-profit organization. Staying organized and paying attention to detail will help your grant management process operate more smoothly, no matter what type of organization you are heading.

Happy Holidays!

By | Nonprofit | No Comments

Xmas LightsWelter Consulting wishes you the very best in 2014 and a happy, joyful holiday!

May your stockings be stuffed with donations and grants!  We are grateful for what you do year round to enrich our communities through your missions.

How Fund Accounting Helps Attract and Retain Major Donors

By | MIP Fund Accounting, Nonprofit | No Comments

iStock_000027056037LargeIn the nonprofit world, success generally is measured by demonstrating impact. But before impact can be measured, funds need to be raised to perform the mission-critical tasks that lead to impact. It is Fund Accounting that can assist your nonprofit in securing those funds. Here’s how.

What major donors want to know

Most major donors have a history of giving to several favorite nonprofits. While they may initially be attracted by the work of a particular organization or have a relationship with someone high up in that organization, savvy donors want to know:

  • If I make an unrestricted contribution, exactly how will that money be used?
  • If I make a gift restricted to one program, how can I be sure that’s how my gift will be appropriated?
  • How much of my gift is going to overhead, and how much to direct services?
  • How well has this nonprofit stewarded its funds in the last two years? Do they run a deficit? If so, why?

Essentially, your major donors – whether they provide individual gifts or grants – are looking for trustworthy stewardship of funds, and also, what Charity Navigator refers to as, “Alignment of Mission, Solicitations, and Resource Allocation.In other words, “look for signs that the charity dedicates both money and staff time in ways that are consistent with what their stated mission is, and with how they represent themselves when seeking donations.” All full 990 forms, which are publicly available, include a section on the nonprofit’s largest programs and funding for those.

What system is best to prove your stewardship of funds to donors?

First, many savvy major donors have served as Directors, or Trustees, on nonprofit boards. They know that only fund accounting can deliver the line-item detail that tracks every dollar of revenue, earned or donated, and specifically how that dollar was expensed. They can read spreadsheets, audit reports, and 990 forms.

  • Whether that donor is on your Board of Directors or not, assume they understand that level of detail, and that they expect fund accounting to be the source of your reports.
  • Listen to what the donor is looking for. Offer reports, based on fund accounting, at the level of detail the donor requests. One of the many advantages of fund accounting is the flexibility to provide reports at any level of detail.

These assurances of how donated funds were expended – whether in an audit report or a simple spreadsheet – can help your organization retain savvy donors critical to your mission’s success.

Second, the Financial Accounting Standards Board and the Governmental Accounting Standards Board require nonprofits to use fund accounting for financial recordkeeping, regardless of the size or scope of the organization.

Take heart. There is no need to be a CPA to use fund accounting. With today’s technology, you can – with some training – use fund accounting software and do your financial tracking in a way that allows Board members as well as other donors to trust your financial reporting.

To learn more about attracting and retaining donors by generating trusted financial reports, please contact us.