Nonprofit financial statements, reports and jargon are the key to ensuring your organization, or business, can operate at its full strength. Thus, it is important that you can understand financials- which involves reading, creating, editing and analyzing your financial reports.
Financial reports will shine light as to how much money your organization operates with, how much donations you received and how much your staff are making. Understanding these numbers is especially important when tax season rolls around!
Sara Lahman of Annie Malone is this week’s A Modern Nonprofit guest!
Previously an Assistant Vice President of Residential Treatment Services with Great Circle, Sara knows a lot about helping the community. And as the CEO of an organization with a very influential mission, she knows how important nonprofit finances are.
If you want to learn how to understand nonprofit finances to help your nonprofit thrive, then you need to subscribe and listen to the latest A Modern Nonprofit Podcast episode!
Differences between being the head of a program vs. head of an entire organization
Tips and tricks to understand numbers
The most important thing(s) a nonprofit leader should know about their financials
Strategies to improve financial knowledge for beginners
And more!
Don’t forget to subscribe to our podcast for future episodes, as there’s tons of more exciting content coming your way!
So, you’ve listened to the most recent episode of A Modern Nonprofit Podcast. Now what?
Everything that Annie Malone does is aimed at ‘Making Lives Better’ for the children and families they serve. As a premier organization that provides a diverse array of services advancing the quality of life for children, families, and communities, Sara Lehman and her team at Annie Malone play a vital role in their community. To learn more about Sara’s organization and to support their mission, make sure to visit their website here.
For individuals who might have realized you’re in over your head with your nonprofit financials, then you are not alone. Have you considered outsourcing your bookkeeping and accounting? Check out the services and pricing that The Charity CFO has to offer, and get the help you need to ensure your financials are not only up-to-date, but efficient and modernized.
Fortunately, you’re not alone if you are struggling to understand nonprofit financials. That’s why Tosha and her team created A Modern Nonprofit Facebook group, which is filled with insightful comments, posts and discussions from industry leaders. The best part? It’s completely free to join this inclusive community! Learn more and join today using this Facebook link.
https://thecharitycfo.com/wp-content/uploads/2025/04/Blog-Body-Images-800-x-467-px-10.png467800Paul Cook/wp-content/uploads/2025/03/fileuploads_222926_8055634_252-8e05624973e20b5de823aebdbcfd37df_LogoLeftAligned.pngPaul Cook2021-03-21 00:32:052025-06-18 07:55:43From a Nonprofit CEO: How to Understand Your Financials
Did you start your nonprofit because you love number-crunching?
Or was it because you have a passion for helping those in need and serving your community?
Most nonprofit directors wish they could focus on relationships, not finances. However, professional accounting help can seem intimidating at first. How do you know when it’s time to transition to professional accounting?
Are you wondering whether nonprofit accounting services are worth it? If so, this article is for you. Read on to learn how specialized accounting services can help your nonprofit succeed.
Lets You Focus on Your Nonprofit
If you founded or joined a growing nonprofit, there are likely many ways you want to give your time. You’re busy hosting galas, networking with your supporters, and doing charity work.
As your organization grows, its finances grow too. Success makes your nonprofit more complex. That means you’ll need to devote more time to financial administration.
Does the financial work take your attention away from your organization? If so, it may be time to seek professional accounting support.
After all, a professional accountant can look after the books. Only you can lead your nonprofit.
Choose the Services You Need
There are two main types of financial administration. Your organization will need both: bookkeeping and accounting.
As a nonprofit, you may be able to fill one of these roles with volunteers. You may find someone to donate their skill to cover a few of these tasks. Every nonprofit has unique resources, and unique needs as well.
That’s why nonprofit accounting services are flexible. They allow you to decide whether you need to outsource some or all of your financial management. This makes professional accounting more affordable as well.
Bookkeeping Services for Nonprofits
A bookkeeper manages the daily financial interactions of your organization, including:
Accepting and recording donations
Paying out bills
Managing banking deposits
Allocating and recording expenses
Executing payroll
Many nonprofits manage these tasks in-house. This works well if they don’t overwhelm your time. You may even divide these tasks among your employees for convenience.
However, as your organization grows, your daily financial tasks increase as well. You may find that they put increasing demands on you and your staff’s attention.
Don’t overlook the dangers of assigning bookkeeping to financially untrained staff. Innocent bookkeeping mistakes can reflect badly on your organization.
If your staff is spending its time on financial tasks instead of charitable work, it’s the right time to seek professional accounting services.
Accounting Services for Nonprofits
Accounting involves analyzing your organization’s financial health. It gives an in-depth look at your nonprofit’s transactions and financial history.
CPA services (chartered professional accountants) include:
Making sure your expenses and income stay in balance
Planning an annual budget
Analyzing expenditures
Preparing your year-end financial report
Evaluating your organization’s overall financial wellbeing
Some of these services can be conducted in-house if you have accounting-trained employees (or volunteers). However, they are time-consuming, especially for non-professionals.
A specialized accountant can administer your accounts faster and more accurately than non-professionals. You will need an independent accountant to perform your mandatory yearly audit (see more below).
Navigate Nonprofit-Specific Issues
Nonprofit organizations have different financial inner workings than businesses. They face unique financial challenges and unique financial requirements as well.
A nonprofit accounting service understands these differences. It can help your organization navigate the special financial requirements you will face.
Nonprofit Audits
Most United States nonprofits are required to have a yearly financial audit. This audit must be conducted by an independent party. Some states require proof of a financial audit before granting registered nonprofit status.
A transparent yearly audit assures donors that your nonprofit is financially responsible. It gives the stamp of integrity to a charity.
However, nonprofit finances are different than for-profit businesses. Their financial audits have to be conducted differently as well. That’s why it’s essential to choose a nonprofit auditor who can analyze your nonprofit finances.
Nonprofit Taxes and Tax Reports
Keeping track of revenue in a nonprofit is always a challenge. Nonprofit revenue streams can include:
With such diverse income streams, nonprofits often struggle to account for their income.
Your organization needs to report your income accurately. Otherwise, you could incur penalizations.
You may also need professional help when it comes to registering for your 501(c)(3) tax-exempt status. Professional accounting services can help in both these areas.
Are Nonprofit Accounting Services Worth It?
Nonprofits often start very small. When is the right time to spend money on outsourcing your accounting tasks?
First, think about how much time your staff currently spends on accounting and bookkeeping.
Time is money, even in the nonprofit sphere. If your staff spends excessive time on finances, you are already spending money on accounting.
Second, think about the quality of your financial management. Do-it-yourself solutions may seem attractive in the short term. In the long term, however, inexpert bookkeeping can make your organization seem unprofessional.
Most importantly, consider the quality of your charity work. Is your staff so busy with administrative work that they don’t have time for your mission? When you spread yourself too thin to do your charity work, it’s time to get accounting support.
Accounting Services For Your Nonprofit
Your nonprofit may have started small. However, it may quickly outgrow your financial administration abilities. If your finances need more time than you can give to them, it’s time to get a professional solution.
Is your organization ready for nonprofit accounting services? Contact us today to schedule your free consultation.
https://thecharitycfo.com/wp-content/uploads/2025/04/thumb16.jpg340585Paul Cook/wp-content/uploads/2025/03/fileuploads_222926_8055634_252-8e05624973e20b5de823aebdbcfd37df_LogoLeftAligned.pngPaul Cook2021-03-15 06:00:062025-06-18 07:55:43How Nonprofit Accounting Services Can Help You Succeed
For years, nonprofit fundraising has been quietly evolving. Specifically, industry professionals have been watching as it moved further and further online. And in 2020, the COVID pandemic accelerated this process, ultimately changing your options as a not-for-profit leader to raise donations.
Jeff Roman of EPIC Agency is this week’s A Modern Nonprofit guest!
Such a drastic change has forced fundraising practices to transform into digital endeavors. That’s why Tosha Anderson, founder & CEO of The Charity CFO, invited Jeff Roman, founder & president of EPIC Agency onto A Modern Nonprofit Podcast. In this informative episode, the two cover topics like:
Why digital marketing is so important for nonprofits and their fundraising goals
How to maximize social media to help spread awareness about your organization
Understanding the power of social media, trending topics and hashtags for nonprofit social media channels
Tips new nonprofits can implement to help them achieve best brand
Are you looking for a team of specialists who can deploy integrated solutions that seamlessly connect with your target audience, create world-class content to highlight your organization, strengthen and develop new revenue channels, help you increase platform visibility, sell your products and services, or promote a cause or mission well? If so, then you are in luck. EPIC Agency is here to serve you. If you’re interested, feel free to get in touch with one of their partners will contact you about beginning the proposal process. Make sure to check them out!
And for individuals looking for specialized, cost-efficient nonprofit bookkeeping and accounting services, look no further than Tosha Anderson of The Charity CFO. With more than 10 years of experience in the not-for-profit sector, Tosha knows what it takes to have financial thought leadership. So, stop working late nights and doing the books yourself. Get an expert team of certified public accountants to help you, all at a price you can afford.
Also, if you’re not already part of A Modern Nonprofit Facebook Group, you don’t know what you’re missing out on. It’s a great community of nonprofit and industry leaders who converse in an open space that encourages collaboration and learning. Request to join here!
https://thecharitycfo.com/wp-content/uploads/2025/04/donation-page-examples.jpg300620Paul Cook/wp-content/uploads/2025/03/fileuploads_222926_8055634_252-8e05624973e20b5de823aebdbcfd37df_LogoLeftAligned.pngPaul Cook2021-03-13 20:25:502025-06-18 07:55:43How to Raise Donations with Online Marketing, featuring Jeff Roman of EPIC Agency
More than 72% of adults in the United States have at least one social media account. These aren’t just people—they’re millions of opportunities for your nonprofit to have an impact on most of the country’s population.
If you’re looking to generate revenue for your nonprofit or spread awareness about a certain issue, you’re in need of nonprofit social media guidance.
We’re here to share exactly how to harness your nonprofit’s ability to make tangible progress using social media.
Nonprofit Social Media: The Basics
Before you even decide which platforms to use, you need to do two things:
Decide your goals (revenue, starting conversation, event attendance, sharing information)
Identify your audience
While your goals might be a combination of the above, and your audience may have a large demographic or age range, it’s important to strategize your social media before diving right in.
Below are a few categories your posts should fall into.
Hot tip: create a content schedule that posts different pieces of content. For example, you don’t want seven days in a row of community building posts. Mix it up by integrating informational posts, too!
Promoting Awareness
At the core of each nonprofit’s mission is education. Without sharing crucial information about the issue you’re combatting, your audience won’t see the value in the work you’re doing.
To get your audience engaged in the purpose of your organization, use statistics and infographics on Twitter or Instagram.
Build Community
Another way to generate a following on social media for nonprofits is to build a virtual community. Your followers want to feel like they’re a part of your movement, so let them in!
Do this by hosting live Q&As on Instagram or virtual forum meetings. Ask your followers to comment with a friend’s name or share their posts for more engagement.
LinkedIn is a great place to cultivate social networking for nonprofits, too, so try posting information there to gain a professional following. The cost of social network marketing is really just your time, so take a leap!
55% of the users who follow nonprofits on social media take action to benefit that organization. Considering some people use social media infrequently or just to share personal information, that’s a pretty great conversion rate!
Share Impact
Lastly, your followers want to know how your work is going. Be transparent and share statistics or stories with them!
Tell them how their donations are making your work possible. People respond well to stories, so get creative in how you share the information. Maybe have a volunteer of your organization or youth participant in your programming share the news!
Ideas for Nonprofit Social Media
Now that you have a sense of your goals and your audience, it’s time to get to it! Here are the top ideas for engaging social media posts that will get your nonprofit some well-deserved attention and donations.
Add Donation Buttons
Especially on Facebook and Instagram, it’s important to make it easy for your followers to donate to your nonprofit. Use Facebook’s charitable giving platform to show that you’re open to donations and encourage users to fundraise for you if they’re able.
Use Hashtags
Hashtags are the best way to get an organic following on social media, no matter the platform. Hashtags are like coding your content to get to the right people.
For example, if you’re sharing something for Giving Tuesday, use the #givingtuesday hashtag to show up in the feed. For more niche topics, use specific hashtags to get recognized, like #artmuseum, #omahaarts, or #donatenow.
Share Videos
If the rise of TikTok taught us anything, it’s that people love short-form videos. Some nonprofits have been taking advantage of this, and TikTok has even responded by adding certain features to support nonprofit fundraising.
Even if you’re not on TikTok, your nonprofit can still make short-form videos to educate the public on your mission.
For example, a museum can make a short video going through an exhibition or touring the building. A nonprofit focused on poverty alleviation can share statistics and footage from donation events or services they offer the community.
There are endless opportunities!
Develop a Style Guide
Using social media solidifies your brand. To build trust among your followers and any new communities, you have to have consistency across the board.
Even if you only have a couple of people managing your social media, develop a style guide with all the information someone new would need to create your content.
This could have a list of your researched hashtags, approved colors, and graphics, or resources for posting techniques. This will ensure that your voice and branding is cohesive for your followers.
Pro tip: Use a free design platform like Canva to keep everything branded and stored!
Use Stories
While many people enjoy perfectly curated content, it’s important to shake it up a bit by using stories on Twitter, Facebook, or Instagram.
Use stories to show the day in the life of an employee or use engaging stickers like polls. This allows you to learn more about your audience and create fun content!
Keep up With the Times
Even if you use a content calendar to schedule content ahead of time, make sure that you’re keeping up with your platforms in between. Like, comment, and engage with other content and accounts you follow.
This helps the algorithms in these platforms see you as a contributor to the platform in multiple ways, instead of just posting.
As the events of 2020 and early 2021 have proven, it’s crucial that you keep up with what’s happening in the world. You don’t want your content to seem insensitive, so make sure your calendar is easy to adjust and that you’re flexible in what you post.
Going All-In on Social Media
If your nonprofit social media is ready to take off, congratulations! Using social media to get people interested in your work and cultivate new donors is a huge step towards furthering your mission as an organization.
When you’re ready, use these nonprofit social media marketing tips to gain new followers and keep them inspired by your work.
If you’re looking for more information on how to make your nonprofit successful, check out the rest of our blog.
We help nonprofits strategize their operations and services to be as efficient as possible. Check out our services and contact us for more information!
https://thecharitycfo.com/wp-content/uploads/2025/04/socialmedia-mn2s.jpg651860Paul Cook/wp-content/uploads/2025/03/fileuploads_222926_8055634_252-8e05624973e20b5de823aebdbcfd37df_LogoLeftAligned.pngPaul Cook2021-02-01 15:51:112025-06-18 07:55:46Crafting an Online Presence: A Guide to Nonprofit Social Media
We have created a complete guide to nonprofit startup funding. The guide is for both those looking for seed money to start a nonprofit and existing organizations that need additional funding. The topic is overwhelming to many, but considering the best nonprofit startup funding strategies is important.
Your dream can become a reality.
Funding is a key step for any charity, but this does not happen overnight. This blog will help you learn how to raise funds for your nonprofit so you can help your organization grow.
4 Types of Funding
We’ve covered four broad types of initial funding (or for existing nonprofits)
1. Start With Your Community for Nonprofit Startup Funding
What do nonprofits do? Nonprofits serve their communities. If you are looking for funding options, start in your community. Work colleagues, friends, and neighbors might see the potential benefits your startup could bring. Don’t be afraid to post calls for help on your social media, too!
Businesses or Community Leaders
Established businesses have cash to spare if they believe your idea can bring something positive to society and be profitable. Also, community leaders tend to be well-connected. They could assist you in reaching out to other people who will likely be interested.
You can present your startup to these leaders and ask them to become board members. This way, they can represent more active stakeholders in your organization. This action will also increase your access to individual donations. Residents are likely to trust these leaders, so they might donate more.
Other Organizations
You can also contact other organizations who provide similar services, or who would be interested in the benefit your startup will bring. For example, churches are likely to find interest in funding food relief centers or homeless shelters. Food providers might also potentially willing to donate some of their own stock to supply your nonprofit. It never hurts to ask.
Friends and Family
You may find it awkward to approach your loved ones for money. But, reaching out to them will give you a good starting ground. They are more likely to understand how passionate you are about the organization. They might be willing to share a stake in the success of your creation. Even if they don’t, they will be more open to sharing your initiative with their circle of friends, thus expanding your reach.
2. Access Grants for Nonprofit Startup Funding
As a nonprofit, you cannot finance your startup in a traditional way. You don’t get to sell items and use the additional money to uphold your organization, so accessing nonprofit grants is a great way for your startup to flourish. However, nonprofit startup grants are a possible option.
What exactly are nonprofit grants, and what do they do?
Nonprofit startup funding is important for your charity.
Well, when it comes to grants, the earlier you receive them, the better. Instead of waiting until you’ve officially started your organization to begin applying, make sure you have a plan. Start reaching out before your organization becomes fully operational because this will prevent future instability. It will also enable the eventual success of your nonprofit.
Here are two prominent types of grants:
Government Grants
There are many government grants out there. This fact will benefit you because there’s no end to the applications you can send out to finance your startup. That being said, make sure to go through the different grants and see which ones will suit your organization the most. To have a better understanding of available grants, you can look through grants.gov.
There are differences between federal grants and state grants. So, make sure to research the ones that are applicable in your area. Keep in mind that there are requirements to meet and contracts to negotiate. You should expect some initial hurdles!
Foundation Grants
Private foundations also provide nonprofit startup grant funds. It may be difficult to know where to begin, but focus on your state and start researching the available private grants in the area.
You may also need to approach the foundation and give them details about what you plan to do with your nonprofit. This will include your projected budget and the specifics of your business plan. If all seems to be suitable, they’ll happily finance your organization.
Note: Business grants are a possible fundraising strategy. Many for-profit businesses create corporate programs, grant options, or scholarships, available to nonprofit organizations. A different type of corporate funding, if you will.
3. Individual Donations for Nonprofit Startup Funding
Did you know that several nonprofits exist by relying on individual contributions from the public? For example, individual donations are the major driving force for the World Wildlife Fund.
To access public donations, set up fundraisers or auctions. Don’t be afraid to get creative. That’s what will draw people in. Fundraising is also a great way to tell people what your nonprofit is all about. This could improve the chances of more donations or public support. Events like bake sales to full-on carnivals, in a post-COVID world, would be useful.
4. Offering Memberships
Providing membership options is a suitable method to earn a fixed amount regularly. People who sign up will contribute to your nonprofit on a recurring basis. You won’t have to worry about finances drying up.
Offering memberships do not apply to all forms of startups. If you have an idea about what to provide to your members- for example, exclusive access to events or information — then this may be a viable funding option.
Tips for Finding Funding Sources
There are several ways to show your organization is ready for funds, improving your chances to bring in more (and do more for your cause).
Compile relevant programs: Doing the research work of gathering all relevant programs (nonprofit grant programs, for example) helps determine the possibilities.
Clearly convey your nonprofit projects: Whether it’s through memberships, individual donations, grants, or other funding methods those giving will want to know about your track record and how the fund will be used.
Show transparency: Keeping accurate track of how dollars and donations are utilized gives people a sense of trust. Accurate financial record-keeping also mitigates issues with governance. Working with a qualified team, experienced in nonprofits, helps immensely.
Nonprofit Startup Funding Can Be Easy
It may seem scary at first. But, you have many options to access nonprofit startup funding. From grants to memberships, you will benefit from researching. You will also benefit if you try out as many options as possible.
Why should you believe in your dreams? If you are compelled to start a nonprofit, use this as your selling point. Helping your community is a great mission to guide your organization. There will always be others who see the potential in your charitable acts.
For more nonprofit help and outsourced bookkeeping assistance, check out our services. This is also a very popular topic in a Modern Nonprofit Facebook Group, which you can join TODAY.
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