800.443.9441 solutions@blackbaud.com www.blackbaud.com © June 2016
Why Fund Accounting is Different:
Common Limitations of Commercial
Accounting Software
FUND ACCOUNTING
Continued
To manage projects and programs,
nonprofits must carefully track and
report on segregated accounts in
the form of funds. These funds must
be treated as separate entities with
independent general ledgers, individual
income statements, and balance sheet
reports. Nonprofits must then report
in total across the entire organization.
Commercial accounting systems like
QuickBooks
®
may be able to maintain
separate revenue and expense accounts,
but they co-mingle balance sheet
accounts. This is not permitted in
fund accounting.
Grants, Endowments,
and Fundraising
Major donations and grants are commonly given with
a set of requirements and responsibilities. These funds
are deemed "restricted," and failure to demonstrate that
restricted funds have been used correctly can have
serious consequences, including loss of funding, loss of
"With its integration into fundraising
and executive decision support
systems, Financial Edge
™
is a
first-rate accounting solution that
was created for, and has served
well, the nonprofit sector."
—Accounting Today
Financial Edge NXT Vendor Activity Details
