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Advice for phased implementation into a nonprofit

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  • Advice for phased implementation into a nonprofit

    We are a nonprofit in support of a historic mill site.
    I have QB Premier and will install it soon. I'm a volunteer not an accountant.
    My question is what advice does anyone who has implemented the software have about introducing it into an organization.
    I feel that a phased implementation makes sense because we have no policies, practices or procedures in place. The responsibility to manage the site was dumped on us by the county. Boom!
    So, in 24 days, we need to be ready to move into QB. And manage the rest manually. Write checks, take money. Manage a budget.
    We are pretty traditional as far as a nonprofit goes. We collect various fees, have some sales on site, pay vendors, accept donations. Some donations are earmarked for projects, some just simple donations.
    So, any advice would be appreciated. And, thank you for reading my post.

  • #2
    See latest edition of Kathy Ivens Running QuickBooks In Nonprofits You may want to consider hiring a local accountant proficient in QuickBooks for not-for-profits.

    One question: What IRS status has IRS assigned for your not-for-profit? Some not-for-profits are subject to different rules than are other non-for-profits.

    You should have a letter from IRS answering the following:
    • Have you been notified by IRS that the organization has been approved as a tax exempt organization? If so, under what section was it approved?
    • Have you been notified by the IRS that the organization has been approved as a public charity?

    The answers to these questions will affect both your accounting and your tax filing requirements. In other words, we need a little more information.
    Last edited by Lorin Browning; 06-06-2019, 08:55 PM.
    Lorin Browning, Ph. D.
    Fellow -- National Tax Practice Institute


    • #3
      We are a 501c3


      • #4
        We have the Determination Letter from the IRS acknowledging us as a public charity.


        • #5
          Once you allow donor-imposed restrictions on donations, things can get complication. See for modifications to FASB accounting standards.

          My best advice is to hire a local accountant who is (1) familiar with QuickBooks accounting procedures, who can (2) construct a chart of accounts consistent with FASB mandated financials or, at a minimum, IRS approved reporting, and who can (3) guide you through phasing in of required procedures.

          As an alternative, contact your local SCORE organization who may provide you with quality guidance at no cost to you.

          There are two situations that will affect the phase-in timeline: (1) the period in which you can get by with an annual filing of just a postcard with IRS (see and (2) being required by external entities such as bank or another funding entity to supply audited financial statements. Audited financials in those are those to which a licensed CPA will attest that the financials are prepared in accordance with GAAP.
          Lorin Browning, Ph. D.
          Fellow -- National Tax Practice Institute


          • #6
            Info to gather for setting up Chart of Accounts

            Thank you for your previous reply. Probably going to get help setting up Chart of Accounts. And, probably other things.
            My question is, what information should I gather in preparation for a meeting with an accountant to set up chart of accounts? Which I believe to be vital to smooth implementation.
            We will have 9 days to get QB going and I am trying to stay ahead of things.