Accounting that protects
your mission.
Donors, grantors, and boards all want to see that money went where it was promised. We handle fund accounting, restricted-grant tracking, and Form 990 so your organization stays compliant and credible.
Built for non-profits.
The specific problems this industry runs into — handled by people who have seen them before.
Fund Accounting & Grant Tracking
Restricted and unrestricted funds tracked separately, with grant-by-grant reporting that shows exactly how each award was spent. When a funder asks, the answer takes minutes instead of days.
Form 990 Preparation
Complete and accurate 990 filings — including functional expense allocation and governance disclosures — prepared to reflect your organization well, since the 990 is a public document donors read.
File your 990Board & Audit Support
Clear monthly financials your board can actually read, plus preparation and support through independent audits and single audits.
Support your boardOrganizations like yours.
Serving clients across Litchfield County and throughout Connecticut.
Charitable Organizations
501(c)(3) public charities managing donations and program budgets.
Membership Associations
Dues-based organizations with events, chapters, and member programs.
Foundations
Private and family foundations with grantmaking and distribution requirements.
Faith & Community Groups
Congregations and community organizations with designated giving.
What nonprofit leaders ask us.
Form 990, restricted funds, and board-ready reporting.
Does our organization have to file a Form 990?
Almost certainly yes. Most tax-exempt organizations must file annually — Form 990-N for the smallest organizations, 990-EZ in the middle, and the full Form 990 above the filing thresholds. Private foundations file Form 990-PF regardless of size. Failing to file for three consecutive years results in automatic revocation of exempt status, which is difficult and expensive to reverse.
What is the difference between restricted and unrestricted funds?
Restricted funds carry donor-imposed limits on how or when they may be used; unrestricted funds may be used for any purpose consistent with your mission. The two must be tracked separately, and spending restricted money on general operations is a serious problem even when the organization is short on cash. Proper fund accounting keeps the distinction visible at all times, rather than discovering the issue at audit.
How should we allocate program versus administrative expenses?
On a documented, consistent, and defensible basis — typically time studies, square footage, or direct usage depending on the expense. This allocation drives your functional expense statement and the program-expense ratio that donors and watchdog sites scrutinize. Overstating program expense to improve the ratio is a real risk; so is understating it through lazy allocation and looking less efficient than you are.
Do we need an independent audit?
It depends on size, funding sources, and state requirements. Connecticut requires audited financial statements above certain revenue thresholds for registered charities, many grantors require an audit as a condition of funding, and organizations spending significant federal funds may trigger a single audit under Uniform Guidance. We help determine what applies to you and prepare the organization so the audit goes smoothly.
Can we lose our tax-exempt status?
Yes. The most common cause is simply failing to file Form 990 for three consecutive years, which triggers automatic revocation. Other risks include private inurement, excessive unrelated business income, substantial lobbying, or political campaign activity. Most revocations are administrative failures rather than misconduct — which means they are preventable with basic annual discipline.
What financial reports should our board see every month?
A statement of financial position, a statement of activities with budget-to-actual comparison, a cash flow view, and grant-by-grant status on restricted funds. Board members are usually not accountants, so the reporting should be readable and short enough to actually get read. A board that cannot understand its financials cannot fulfill its fiduciary duty, and that is a governance problem before it is an accounting one.
How do we handle in-kind donations?
Contributed goods and services must be recorded at fair value when they meet recognition criteria — contributed services in particular only qualify if they require specialized skills and would otherwise have been purchased. Nonprofits both under-record donated goods and over-record volunteer time. The reporting requirements for gifts-in-kind have tightened in recent years, and the disclosures are more detailed than most organizations realize.