Accounting & financial services for Chicago nonprofit organizations
You’re planning events and programs, fundraising, managing staff and volunteers – plus keeping your financials organized and current. Nonprofit accounting adds another layer: fund tracking by restriction, public Form 990 filings, grant compliance requirements, and board reporting that actually makes sense.
Most accountants understand business accounting well, but nonprofit requirements are different. Since 2014, we’ve served mission-driven organizations with accounting expertise specific to nonprofit operations and compliance requirements. We work with local and national nonprofit organizations.
AccounTing for Nonprofits
Specialized nonprofit accountant support
Tax-exempt organizations hold different classifications – 501(c)(3) charities, 501(c)(4) advocacy groups, 501(c)(6) professional associations, and organizations managing related for-profit entities. Each structure has distinct compliance requirements, and we coordinate accounting across all of them.
Charitable organizations
Charitable 501(c)(3) nonprofits work under close public oversight, and the rules around donations can get complex quickly. We help maintain clean records for contributions, handle the substantiation requirements donors expect, and assist with unrelated business income tax when it applies. If you manage restricted funds, we set up accounting that protects donor intent while still giving you flexibility to run your organization.
Arts & culture
Arts organizations often rely on both earned revenue and contributed support, which means your books need to clearly show how each dollar is used. We track restricted and unrestricted funds, allocate production and program costs accurately, and handle deferred revenue from advance ticket sales or memberships. Our reporting makes grant compliance and renewals more straightforward. Learn more about our accounting and bookkeeping services.
Advocacy & social welfare
501(c)(4) organizations have more flexibility for lobbying and political activity than charities, but the tax rules are stricter. We help you track lobbying expenditures, manage the tax implications of political spending, and maintain clear separation between your 501(c)(4) and any related 501(c)(3) entities.
Professional associations
Membership-based organizations are 501(c)(6) professional associations that need clear visibility into dues, benefits, programs, and events. We set up accounting systems that separate member vs. non-member income, manage conference and publication financials, and monitor any activity that may trigger unrelated business income tax. The result: financial reporting your board can use to make informed decisions.
Need payroll processing as well as bookkeeping? We’ve got you covered.
Rob always ensures we’re on the right track and handling things properly, making the whole process so much easier. As someone who dreads dealing with anything financial, I truly appreciate his proactive approach.
– Matt W.
Nonprofit accounting and bookkeeping services
Nonprofit accounting specialization means understanding fund accounting principles, Form 990 complexity, grant compliance requirements, and audit preparation needs.
Fund accounting & revenue tracking
Challenge
Nonprofits must track revenue by funding source and restriction type. Without proper fund accounting, you can’t demonstrate that grant money went where it should or that restricted donations funded the right programs.
Solution
We implement fund accounting systems that separate restricted, temporarily restricted, and unrestricted funds. When donors or grantors ask where their money went, you have the documentation ready.
Form 990 preparation & IRS compliance
Challenge
Form 990 is your nonprofit’s public face. The form’s complexity means mistakes happen easily without specialized knowledge.
Solution
We prepare accurate, complete Form 990 filings that reflect your mission and programs clearly. Your Form 990 becomes a transparency tool, not a compliance burden.
Program & functional expense allocation
Challenge
Nonprofits must allocate expenses across program services, management and general, and fundraising categories. Without proper allocation methods, your financials can misrepresent how efficiently you operate.
Solution
Establish allocation methodologies that accurately reflect how expenses support different functions. Shared costs like rent and salaries get allocated based on time studies, space usage, or other reasonable methods. Your program expense ratios tell the real story of mission delivery.
Audit readiness & internal controls
Challenge
Annual audits or financial reviews are standard for nonprofits receiving significant funding. Poor preparation turns audit season into chaos and can result in qualified opinions that harm funding prospects.
Solution
Maintain audit-ready books throughout the year. Documentation supports every transaction. Internal controls prevent fraud and errors while demonstrating good governance. Clean audits strengthen stakeholder confidence.
Grant compliance & reporting
Challenge
Federal grants, foundation funding, and corporate donations come with specific spending requirements. Missing deadlines or misallocating costs can result in funding clawbacks or disqualification from future grants.
Solution
Track grant budgets against actual spending, flag potential compliance issues, document grant expenditures, and prepare required financial reports on schedule.
Board & stakeholder reporting
Challenge
Board members, directors and donors need transparent financial information they can understand and act on. Standard accounting reports don’t meet these needs without translation and context.
Solution
Financial reports that communicate clearly, budget-to-actual comparisons show financial performance, and cash flow projections highlight upcoming needs. Your board and leadership team get information that supports good governance and strategic planning.
Build trust, stay compliant, and make a bigger impact.
Our Chicago office serves nonprofit organizations throughout Illinois and the United States.
Have questions? Book your complimentary 20-minute consultation call with Rob.
Our Approach
Mission focus guides everything we do. We understand that every dollar you spend on accounting is a dollar not spent on programs.
Since 2014, we’ve provided accounting services to nonprofits in Chicago and across the United States. Learn more about working with us.
How we work with your nonprofit
Our licensed CPAs help you navigate nonprofit tax requirements, minimize unrelated business income tax, and stay compliant with grant and IRS regulations.
1
Discovery call
We learn about your programs, funding sources, board requirements, and grant obligations. You tell us what’s working in your current accounting and what creates frustration.
2
Setup and structure
Establish fund accounting for your revenue sources, create chart of accounts supporting grant reporting, implement systems for tracking restricted funds, and set up the reporting formats your board and grantors need.
3
Ongoing compliance
Monthly accounting close, financial statement preparation by fund and program, and coordinated audit preparation when required. If you have questions along the way, we’re here for you.
4
Strategic support
Nonprofit accounting that informs mission decisions: cash flow guidance for seasonal revenue patterns, program evaluation for financial sustainability, and strategic planning support.
Ask a CPA
Nonprofit accounting resources and FAQs
Nonprofit accounting uses fund accounting to track restricted and unrestricted revenue separately, requires functional expense allocation across program services and support categories, involves Form 990 public disclosure instead of standard tax returns, and demands grant compliance tracking that businesses don’t face. Restricted contributions must be tracked according to donor intent. Revenue recognition follows different rules for contributions versus earned income. The accounting must serve multiple audiences (donors, grantors, boards, and regulators) each with different information needs. Standard business accounting doesn’t address these requirements.
We prepare Form 990 and related filings including Form 990-T for unrelated business income and coordinate Form 1023 applications for organizations seeking tax-exempt status. Form 990 requires nonprofit-specific knowledge—the form’s public nature means accuracy and transparency matter enormously. We also advise on unrelated business income tax issues, charitable contribution substantiation requirements, and maintaining tax-exempt status. Form 990 preparation isn’t just compliance—it’s a transparency and credibility tool when done well.
We maintain audit-ready records throughout the year, prepare organized documentation supporting transactions, implement internal controls auditors expect to see, coordinate with audit firms during fieldwork, and respond to auditor information requests. Many grantors require annual audits or reviews. Poor preparation creates unnecessary costs and can result in qualified opinions that damage credibility. Year-round attention to documentation and controls makes audit season manageable instead of chaotic.
We track restricted funds according to donor specifications and grant agreements, separate temporarily restricted from permanently restricted funds, release restrictions when conditions are met, report fund balances by restriction type, and maintain documentation supporting restriction status. Mixing restricted and unrestricted funds violates donor intent and grant agreements. Proper fund accounting demonstrates stewardship and maintains the trust that sustains nonprofit funding.
We serve 501(c)(3) charitable organizations, arts and cultural nonprofits, and professional membership associations. Each organization type has specific accounting needs—arts organizations balance earned and contributed revenue with production costs, while associations manage membership dues, event income, and member benefit costs. We understand these variations and tailor accounting to support each organization’s specific structure and funding model.
Boards need financial statements showing revenue and expenses by fund, budget-to-actual comparisons highlighting variances, cash flow information supporting operational planning, and program-level reporting demonstrating mission impact. Effective board reporting translates accounting data into information that supports governance and strategic decisions. We prepare reports in formats board members can understand and act on, not just standard accounting statements that require translation.
If you’re an exempt organization (non profit), then tax FORM 990, 990-EZ, and 990-PF are due by the 15th day of the 5th month after your organization’s year-end. So, if your organization has a year-end date of December 31, your tax return due date is May 15. You can request a 3 month automatic extension, then apply for an additional 3 month extension. You will need to complete FORM 8868 for this extension.
For more information, and to find related forms, visit the IRS website pages for Nonprofits and Charities.