By donorsearch

Fund Accounting Fundamentals: Bottom Line for Fulfilling Nonprofit Missions

What sets nonprofit organizations apart from for-profit businesses? The answer is simple. Each has its own criteria for financial success.

For-profit organizations focus on profitability, whereas nonprofits use fund accounting to focus on accountability. Success for nonprofit organizations is determined by fulfilling its mission. To accomplish this, nonprofits must raise money and be accountable to funding sources.

Contrary to a for-profit, a nonprofit has two bottom lines. One is to fulfill their stated mission while the other one is having the necessary funding to support their mission.

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