Unlike for-profit businesses that exist to generate profits for their owners, nonprofit organizations exist to pursue missions that address the needs of society. Nonprofit organizations serve in a variety of sectors, such as religious, education, health, social services, commerce, amateur sports clubs, and the arts. Nonprofits do not have commercial owners and must rely on funds from contributions, membership dues, program revenues, fundraising events, public and private grants, and investment income.

Not-for-profits have unique needs.  Concepts such as accounting for public funding, donations, and other sources of revenue and expenditures can present different challenges than in for profit organizations.

This course focuses on specific aspects integral to the introduction of accounting for non-profits, including establishing a chart of accounts and exploring the types of revenue that a typical not-for profit organization obtains and how that revenue is accounted for.

Learning Objectives
  • Explore the concepts behind the chart of accounts for a non-profit.
  • Identify accounting principles and basic guidelines in a non-profit.
  • Explore how accounting principles impact non-profit guidelines.
  • Explore funding of a not-for profit including:
    • Grants
    • Contributions
    • Membership
  • Explore how to account for and value donated services.
  • Identify concepts of the middle man.
Last updated/reviewed: August 28, 2023

Included In Certifications

This course is included in the following Certification Programs:

15 CoursesNot-For-Profit and Small Business Entities Certification

  1. Introduction to Not-for-Profit Entities
  2. Introduction to Accounting for Not-For-Profit Entities
  3. Identifying and Implementing the Proper Balance of Internal Controls
  4. Segregation of Duties for Core Business Processes
  5. Bookkeeping: Journals, Subsidiary Ledgers and General Ledger
  6. Bookkeeping: Payroll And Expenses
  7. Bookkeeping: Accounts Payable/Accounts Receivable And Receipts
  8. Effectively Managing and Controlling Travel and Entertainment (T&E) Expenses
  9. Management Internal Control Essentials
  10. Financial Statement Essentials for Not-for-Profits
  11. Not-for-Profit Financial Statements Part 2
  12. Not for Profit Financials - Focus on Net Assets
  13. Cyber Risk in Small-Medium Entities
  14. Fraud in Small-Medium Entities
  15. Not-For-Profit Accountability and Responsibility
66 Reviews (208 ratings)

Reviews

5
Anonymous Author
This course provided a great overview of an area I'm less familiar with working in the private sector. Nonetheless, I learned several new concepts that will help round out my personal knowledge in this arena. The facilitator was effective in presenting key concepts and the supporting materials were exceedingly helpful.

3
Anonymous Author
This is a very HIGH-level overview. I felt like too much time was spent on the Chart of Accounts segment. I would have rather seen more time spent on the other segments like memberships & exchange transactions. The section on middlemen I found very confusing. It would have been helpful to have a real-life example.

4
Anonymous Author
A nice intro into NFP accounting. The course touches on multiple topics, but most from a high or summary level. Would recommend this for individuals who are looking to learn the basics. A more in-depth course would be recommended for those who already have some foundational knowledge of NFPs.

5
Anonymous Author
This course is a good overall introduction to the accounting used in not-for profits. The instructor did a good job of explaining the various concepts and providing examples of those concepts. I definitely recommend this course to anyone interested in the basics of not-for profit accounting.

5
Member's Profile
The examples given on how to account and classify a contribution as a donation or exchange was beneficial. However, a more thorough example(s) on how to differentiate between accounting restricted funds between deferral and restricted methods would have been helpful.

5
Member's Profile
The course is extremely helpful and comprehensive, especially for those who work in the nonprofit sector. The instructor explains in details the concepts of GAAP, chart of accounts, and the different terms used in nonprofit entities, with great examples.

4
Anonymous Author
An excellent introduction to non-profit accounting presented by Lynn Fountain. The course is well-organized and moves at an appropriate pace. Key concepts are emphasized and critical differences to for-Profit concerns are addressed.

4
Anonymous Author
The course was a good overview for beginners and review for more experienced practitioners. Instructor was engaging. Since rules have changed since 2018, would like to see this course updated for current rules.

3
Anonymous Author
Needed this general overview as I'm looking at a not for profit job opportunity....been a lot of years since doing this type of accounting. Good fundamental reminder of the basic with this course

4
Anonymous Author
Some of the distinctions seemed a bit arbitrary. Material was a bit rushed as well. Shorter slides would have been more effective. Instructor was pretty easy to follow though.

5
Anonymous Author
A good pre-courser to accounting for not-for-profit companies. It discusses the peculiarities of NFP companies as compared to profit. It is structured and easy to follow.

5
Member's Profile
Good examples were given in the course. Instructor was very knowledgeable. I would recommend this course to someone that wants an overview of nonprofit accounting.

4
Member's Profile
This course was an excellent introduction to non profit accounting. I've recently gained a non-profit client and this has given me solid groundwork to build from.

5
Anonymous Author
Course was excellent. Was kept at the appropriate level of detail. Instructor knew the subject area very well and made a clear and effective presentation.

5
Member's Profile
This was my first introduction to accounting for nonprofits. I found it very interesting and easy to follow. The examples were very helpful. Thank you.

4
Member's Profile
More frequent usage of actual accounting (debit and credit) would be helpful - for example, show the transactions for the middle man example.

5
Anonymous Author
This course was super helpful to understanding Not-For-Profit accounting. The instructor was effective in presenting the course materials.

3
Anonymous Author
Would have loved a bit more insight into the journal entries needed to recorded contributions under both deferral and restricted methods

5
Anonymous Author
Got a bit mixed up in the discussion of restricted and deferral methods of recognizing revenue, but after a few repeats, it made sense.

5
Anonymous Author
Great course. Found it to be very useful and also used as a refresher course in accounting when dealing with not for profit companies.

5
Anonymous Author
Very good, structured introduction to guiding principles of NFP entity accounting. Another excellent presentation from Ms. Fountain.

5
Member's Profile
I enjoyed all of Lynn's courses. She gets straight to the point and offer examples that is easily relatable to the information.

4
Member's Profile
Very different from the profit organizations!!! Interesting analyzis on specifics for non profit organizations! Recommended!

5
Member's Profile
very good course I plan to take the others. This course did not wastem my time was concise and to the point but informative

4
Anonymous Author
This was a good course that covered all the basics that I needed. There are good examples within the course that help too.

3
Anonymous Author
The first half of the course seemed unnecessary, going over whether assets and liabilities were debit or credit accounts.

4
Member's Profile
Took this course to refresh myself for service on a non-profit board. Found it to be a good refresher of terminology.

5
Member's Profile
Good overview of accounting for not-for-profit entities. The wording on some of the test questions was confusing.

5
Member's Profile
This course explains the basics of NFP accounting from the ground up, not just the differences between NFP and FP.

5
Member's Profile
Material was explained in a manner that was easy to understand and utilized good examples to reinforce the theory.

5
Member's Profile
It is a good course to gain an understanding of the Not for Profit entities. The instructor is clear and detailed.

5
Member's Profile
This didn't cover some really basic items like a full set of financials for a non-profit. It should be included.

4
Anonymous Author
Course was interesting and seems to have covered the main differences in accounting for non profit entities.

5
Anonymous Author
Good information for non-profit accounting. Instructor does a good job of making information understandable.

5
Anonymous Author
This is good course for those in the not for profit accounting segment, it has a lot of useful information.

5
Anonymous Author
Whether you have an accounting background or not, this course is a great primer for non-profit accounting.

5
Anonymous Author
This trainer is my favorite trainer. She is very good at explaining things in a way that I can understand.

5
Member's Profile
This a well structured overview of accounting for non-profit entities, instructor was effective and clear.

5
Anonymous Author
great course for those not familiar with non profit accounting --instructor is very organized and clear

5
Anonymous Author
Great introduction to non-profit accounting. The instructor is always clear and easy to understand.

4
Member's Profile
I think this course gives a great understanding of how accounting should be handled for a non-profit.

4
Anonymous Author
The course was very helpful in understanding the proper accounting of not-for-profit entities.

4
Anonymous Author
Good overview of non profit accounting which provides many examples to drive home the concept.

5
Member's Profile
Excellent instructor, great slides, very good overvirew of the subject with lots of details.

5
Member's Profile
Good overview of not-for-profit accounting and the structure of a non-for-profit entity.

4
Anonymous Author
good overview course illustrating in detail a sample chart of accounts for a nonprofit

5
Anonymous Author
I always find this instructor's courses useful. I really enjoy taking her classes

5
Member's Profile
Good overview and provides examples of each topic that help to put it in perspective

5
Anonymous Author
The course is a good training course as a starter in learning nonprofits. Thank you!

5
Anonymous Author
Instructor is very good and makes the material easy to follow and understand.

5
Member's Profile
Good review course on non profit accounting. Will refer back to this often

5
Anonymous Author
Very educational, I like your styple of explaining things. Thanks so much!

3
Anonymous Author
This course is a helpful overview of some non-profit accounting concepts.

5
Member's Profile
Content was informational and course was easy to follow. Would recommend.

5
Anonymous Author
Very good overview of the basics regarding accounting for Not for Profits.

3
Anonymous Author
Interesting class learned a lot. I can use it for non-profit accounting.

5
Anonymous Author
Another excellent review into the accounting aspects of a not for profit

4
Member's Profile
Good over introduction to the basic accounting concepts for non-profits.

4
Member's Profile
Good summary of basic principles governing accounting for non-profits

5
Anonymous Author
Good intro course for NPO's. I recommend for those getting started.

5
Anonymous Author
She is very very good and I love her ability to convey information

5
Member's Profile
It would be helpful in some areas to supply the journal entry.

5
Anonymous Author
Information shared was average.. but very straight fowarfd

5
Member's Profile
Informative introduction course for non-profit accounting.

5
Anonymous Author
Good overview of the general accounting for non-profits.

5
Anonymous Author
Informative course for NPO auditors. Thank you so much

Prerequisites
Course Complexity: Foundational

No Advanced Preparation or Prerequisites are needed for this course. However, it is recommended to take the other courses in the series prior to completing this one.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTIONS AND OVERVIEW
  Introduction to Accounting for Not-for-Profit Entities6:16
  Chart of Accounts (COA)13:23
  Accounting Principles3:30
  Basic Guidelines 8:56
  How Principles:Guidelines Affect FS3:52
  Grants2:05
  Contributions11:37
  Valuing Donations8:15
  Services1:48
  Middle Man1:53
  Membership & Summary3:41
CONTINUOUS PLAY
  Introduction to Accounting for Not-for-Profit Entities1:05:16
Supporting Materials
  Slides: Introduction to Accounting for Not-for-Profit EntitiesPDF
  Introduction to Accounting for Not-for-Profit Entities Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam