Bookkeeping for nonprofits
A nonprofit takes in donations and grants with rules attached, spends on programs and overhead, and answers to a board and funders. Mispar tracks restricted and unrestricted money separately, groups costs by program, and prepares monthly books in your own QuickBooks Online or Xero file, ready for your accountant to prepare annual filings. Plans start at $229/mo.
Best for: Small charities, community organizations, houses of worship and foundations with modest staff.
Separated
Restricted funds
By program
Program costs
Tracked
Grants
Monthly
Board reports
Where nonprofit books usually go wrong
- Grants and restricted gifts recorded as ordinary income, so restrictions are hard to honor.
- Expenses not split between program, administration and fundraising.
- Pledges and multi-year commitments tracked outside the books.
- Donor receipts and acknowledgments kept in a separate system that never ties to the deposits.
- Board reports built by hand each month from bank statements.
How Mispar keeps your nonprofits books clean
Industry-specific accounts and categorization, with the reporting scope agreed before work starts.
Restricted and unrestricted gifts
Record gifts with donor restrictions apart from general funds so money is spent as promised.
Grant receivables and reporting
Track awarded, received and remaining grant amounts by funder.
Program and overhead costs
Group expenses by program, management and fundraising so reports are ready for funders.
Online donation platforms
Match processor payouts to deposits, with fees on their own line.
Payroll and volunteer stipends
Reconcile payroll and stipends and tag them to programs.
Event and fundraiser income
Keep event income and costs together so each fundraiser can be reviewed.
Volunteer and board expenses
Record reimbursed board and volunteer costs by program with receipts attached for your records.
In-kind donations
Record donated goods and services at the value your accountant sets, kept apart from cash income.
Membership dues
Track dues by member type and period so renewals are visible.
Reports a nonprofit can use
- Income by fund, showing restricted and unrestricted balances.
- Expenses by function: programs, administration and fundraising.
- Grant tracking with amounts received, spent and remaining.
- Board-ready financial statements each month.
A simple, predictable process
From kickoff to your first clean close, here is exactly what happens.
Map funds and programs
We list funds, grants, programs and donation channels.
Set up fund tracking
Funds and programs get their own accounts or classes.
Reconcile each month
Donation payouts, grant payments, payroll and vendor bills are matched to the bank and to the fund.
Deliver monthly statements
Monthly statements arrive ready for your CPA with an open-items list.
Illustrative example
A foundation grants $15,000 for a literacy program. The money is tracked to that program as it is spent, so the board can see how much of the grant is left. When a second grant arrives for the same program, it gets its own line, so each funder's report matches what was spent against that award. This is an illustration of the method, not a customer case or a guarantee.
Nonprofits bookkeeping — your questions
Can you track restricted funds?
Yes. They are kept apart and listed with amounts spent and remaining.
Can you prepare statements for the board?
Yes. Monthly statements with an open-items list.
What do you need each month to keep nonprofit books?
Bank statements, donation platform reports, grant agreements, payroll reports and vendor invoices.
Do you file the annual return?
No. Your accountant prepares filings. We give them clean books.
Can you split costs between programs?
Yes, on a rule agreed with you and your accountant.
Can you track in-kind gifts?
Yes. They are recorded at a value agreed with your accountant and kept apart from cash.
Can you track restricted funds?
Yes. Each restricted gift or grant has its own fund so you can show how the money was used.
Can you handle membership dues?
Yes. Dues are tracked by period and type.
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