Nonprofit companies are companies that are formed not to generate revenue, but to usually work for a cause. The QuickBooks chart of accounts will look a little different than that of a company that is working to make a profit.
The income accounts will vary based on what the non-profit company does. Some examples of famous nonprofit companies are:
- Red Cross
- Salvation Army
- Ford Foundation
- Ronald McDonald House
These companies all have some way of taking in income, usually through donations or fund raisers. Income accounts should be created for the different ways that your nonprofit gets funding. Examples of income accounts would be:
- Direct Public Grants
- Direct Public Support
- Corporate Contributions
- Gifts in Kind
- Individual Business Contributions
- Indirect Public Support
- Membership Dues
- Program Service Fees
Expenses for nonprofit industries should always be recorded because many of the expenses will be excellent deductions at the end of the year. Consider the kind of expenses that your company incurs. Things like legal fees, accounting fees, facilities and equipment, awards and grants, and donated equipment would all be examples of expense accounts.
Where Can I Find More QuickBooks Help?
To learn about a chart of accounts for another industry, try our post on industry specific charts of accounts.
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