01 · Fund accounting
Restricted vs. unrestricted
Net assets tracked by restriction so you can always show what's restricted, what's available, and that designated funds were used as intended.
QuickBooks setup →New York · Nonprofits & Charities
New York nonprofit accounting built for the CHAR500 and your board.
For charities and 501(c)(3)s, the books have to satisfy two audiences: the Charities Bureau and your funders. A named Certified QuickBooks ProAdvisor runs fund accounting, tracks restricted versus unrestricted net assets, and prepares the financials that feed your annual CHAR500 and Form 990 — coordinating with the independent CPA who performs your audit or review.
- Built around
- CHAR500 & 990
- Monthly from
- $400
- Your ProAdvisor
- Named
The short version.
Nonprofit accounting in New York is built around fund accounting and the annual filing. New York charities registered with the Attorney General's Charities Bureau must file Form CHAR500 each year — due four months and fifteen days after fiscal year end (May 15 for calendar-year filers) — including a complete IRS Form 990 with schedules and a mission statement. The financial-statement requirement scales with size: an independent CPA audit is generally required above $1 million in gross revenue and support, a CPA review above $250,000 and up to $1 million, and an unaudited report below that (verify your tier with the Charities Bureau). A named Certified ProAdvisor runs the fund accounting, tracks restricted versus unrestricted net assets, allocates functional expenses, and prepares the clean financials that feed the CHAR500 and the 990 — while the independent CPA performs any required audit or review and your filing is completed. Fixed-fee at $400–$2,500+/mo, all 62 counties. We prepare the books; an independent CPA audits and your filings are made.
Quick answers
New York nonprofit accounting, in five questions.
- What's different about accounting for a nonprofit?
Fund accounting and the annual filing. Nonprofits track money by restriction — restricted versus unrestricted net assets — and allocate expenses by function (program, management, fundraising). In New York the books also have to produce a clean Form CHAR500 and IRS Form 990 each year.
- What is the CHAR500 and when is it due?
It's New York's annual charities filing with the Attorney General's Charities Bureau, due four months and fifteen days after fiscal year end — May 15 for calendar-year filers — and it includes your complete IRS Form 990 with schedules.
- Does my nonprofit need an audit?
It depends on revenue. An independent CPA audit is generally required above $1 million in gross revenue and support; a CPA review above $250,000 and up to $1 million; below that, an unaudited report. The audit or review is done by an independent CPA — not by us — and we prepare the books that feed it.
- What does it cost?
$400–$2,500+/mo, fixed-fee against a written scope, set by transaction volume, number of funds and grants, and reporting complexity.
- Can you track grants and restricted funds?
Yes — that's the core of it. A named Certified ProAdvisor uses QuickBooks classes and tags to track each grant and funding source, keep restricted and unrestricted funds clearly separated, and produce the functional-expense reporting funders and the 990 require.
Why NY nonprofit books slip
Three places New York nonprofits lose compliance and funder trust.
A mission-focused organization can fall behind on the books that keep its status and its grants. Knowing which of these you're in tells us where to start.
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Status & filing at risk
CHAR500 or 990 not filing-ready.
Highest risk · every registered charity
The problem: The CHAR500 is rejected most often for a missing audit, a missing or incomplete Form 990, or fee-calculation errors — and a late or failed filing can mean penalties and, at the extreme, loss of tax-exempt status. Books that aren't kept to the filing's structure all year make every May 15 a scramble.
The fix: Books maintained year-round in the form the CHAR500 and 990 require, so the annual filing is a clean handoff to your CPA, not a reconstruction.
Honest read: If your 990 gets assembled from scratch each spring, you're carrying avoidable filing and status risk.
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Funder trust erodes
Restricted funds aren't tracked separately.
High impact · grant-funded organizations
The problem: When restricted grant money and unrestricted operating funds blur together, you can't show a funder their dollars were spent as designated — and you risk spending restricted funds on the wrong thing. Nothing damages funder confidence faster than not being able to account for a grant.
The fix: Restricted and unrestricted net assets tracked separately, with each grant and funding source followed from receipt through spend in QuickBooks.
Honest read: If a funder asked today how their grant was spent, the answer should take minutes, not a week of digging.
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Reporting is incomplete
No functional-expense allocation.
Rising risk · growing organizations
The problem: The 990 and most funders expect expenses split by function — program, management and general, and fundraising. Without an allocation method built into the books, that split gets estimated at year end, your program-expense ratio is unreliable, and your reporting looks weaker than your work.
The fix: A functional-expense allocation built into the chart of accounts and applied monthly, so program, management, and fundraising costs are accurate all year.
Honest read: Funders read your program-expense ratio. If it's guesswork, you're being judged on a number you can't defend.
What TechBrot handles
New York nonprofit accounting, done by an expert.
Every engagement is scoped to your funds and programs, delivered in your own QuickBooks file by a named Certified ProAdvisor — coordinating with the independent CPA who audits and files.
02 · Grant tracking
Grant & funder reporting
Each grant followed from award through spend, with the reporting funders ask for ready when they ask for it.
Bookkeeping →03 · Functional expenses
Program / admin / fundraising
Expenses allocated by function every month, so your program-expense ratio and 990 statement of functional expenses are accurate, not estimated.
Monthly bookkeeping →04 · CHAR500 & 990 prep
Filing-ready financials
Year-end financials prepared in the form the CHAR500 and Form 990 require, handed cleanly to your CPA for audit or review and filing.
Bookkeeping →05 · Audit support
Audit-ready books
Clean, reconciled records and schedules that make your independent CPA's audit or review faster and less costly — including cleanup if you're behind.
Cleanup →06 · Payroll & staff
Staff & contractor payroll
Payroll for staff and contractors handled correctly, with wages allocable across programs and grants where your funding requires it.
Payroll →
Tools we work alongside
Connected to how you run the organization.
- QuickBooks Online
- Bill.com
- Donorbox
- Bloomerang
- Givebutter
- Stripe
- Gusto
- Expensify
Using a different donor-management or grant platform? If it exports to QuickBooks, we can build the workflow around it. Ask on a discovery call.
How engagements work
From year-end scramble to filing-ready all year.
Every New York nonprofit engagement follows the same four-phase rhythm — books accurate first, funder reporting second, advisory third.
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Phase 1
Discovery
A 30-minute call to map your funds, grants, programs, fiscal year, and where the books or filings are falling behind. No pitch.
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Phase 2
Fund setup & cleanup
Configure fund accounting, grant tracking, and functional-expense allocation, plus a cleanup to restate prior periods to restricted/unrestricted and program structure.
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Phase 3
Monthly close & reporting
Monthly reconciliation, restricted-fund tracking, functional-expense allocation, and board- and funder-ready reporting kept current.
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Phase 4
Filing & advisory
CHAR500- and 990-ready financials handed to your CPA, and as you grow, budget and cash-flow advisory for the board.
Beyond the books
Clean compliance is the floor. Funding the mission is the point.
Once your funds are tracked, your CHAR500 and 990 are a clean handoff, and your functional expenses are accurate, the question shifts from "are we compliant?" to "are we sustainable?" Which programs cost what they should, how much unrestricted reserve the board should hold, where grant funding is concentrated and what happens if one source ends, how to budget against an uneven funding calendar — the questions that separate New York nonprofits that grow their mission from those that lurch year to year.
That's where advisory comes in: a Certified ProAdvisor who knows your organization's numbers turning them into program budgeting, reserve planning, and cash-flow forecasting for the board. Automation handles the data entry. We handle the judgment. As automation takes over routine entry, this judgment layer is where nonprofits find their footing.
Common questions
New York nonprofit accounting questions.
Two things. First, fund accounting: nonprofits track money by restriction — restricted versus unrestricted net assets — and allocate expenses by function (program, management and general, and fundraising), which a for-profit chart of accounts isn't built for. Second, the annual filing: New York charities must produce a clean Form CHAR500 and IRS Form 990 each year. So nonprofit books have to satisfy both your board and funders on one side and the Attorney General's Charities Bureau and the IRS on the other, which is why they're structured differently from the ground up.
The CHAR500 is New York's annual financial filing for charitable organizations, submitted to the Attorney General's Charities Bureau. It's due four months and fifteen days after your fiscal year end — May 15 for calendar-year organizations — and a single six-month extension is generally available if requested before the due date. The filing includes a complete copy of your IRS Form 990 with schedules and a mission statement, and the registration fee ranges from $25 to $750 depending on your gross contributions. We keep the books so the financials that go into it are clean and ready; your CPA completes and files it.
It scales with your gross revenue and support. As a general rule in New York, an independent CPA audit is required above $1 million, a CPA review is required above $250,000 and up to $1 million, and below $250,000 an unaudited financial report is acceptable. Because published guidance has shown some variation in the $750,000–$1 million band over the years, you should confirm your specific tier with the Charities Bureau or your CPA. Importantly, the audit or review must be performed by an independent CPA — that's deliberately not us. Our role is preparing accurate, reconciled books so that audit or review is straightforward and less expensive.
Independence. A nonprofit audit or review must be performed by an independent CPA who did not prepare the books being examined — that separation is the whole point of the engagement. TechBrot is a Certified QuickBooks ProAdvisor bookkeeping firm, not your auditor, so we prepare and maintain the financial records and then hand them to your independent CPA, who performs the audit or review and files. Done well, our work makes their work faster and your audit fee lower, because the records arrive clean and reconciled rather than needing reconstruction.
Using QuickBooks classes and tags, we track net assets by restriction and follow each grant and funding source from the moment it's awarded through how it's spent. That means you can always show a funder that their restricted dollars went where designated, see how much unrestricted money is genuinely available, and avoid the serious problem of spending restricted funds on the wrong purpose. It's also what makes grant reporting a quick export rather than a manual reconstruction every time a funder asks.
The Form 990 and most funders expect your expenses split by function: program services, management and general, and fundraising. Functional-expense allocation is the method that assigns each cost — including shared costs like rent and salaries — across those categories. We build that allocation into your chart of accounts and apply it monthly, so your statement of functional expenses is accurate year-round and your program-expense ratio (a number funders watch closely) is something you can defend rather than estimate at year end.
Monthly bookkeeping for a New York nonprofit runs $400–$2,500+ per month, fixed-fee against a written scope. Pricing is set by transaction volume, the number of funds and grants you track, payroll, and reporting complexity — a small all-volunteer charity is at the lower end; a multi-program organization with several restricted grants and functional reporting higher. We quote a firm number after reviewing your books. The independent CPA's audit or review fee is separate and billed by them.
Book a free discovery call. We review your QuickBooks file remotely, map your funds, grants, and programs, determine whether you need a cleanup first or can go straight to monthly service, and send a written fixed-fee proposal within 3 business days. Your named Certified ProAdvisor begins as soon as you approve. We prepare the books; an independent CPA performs any required audit or review, and your CHAR500 and 990 are filed.
Page review & standards
Reviewed by the TechBrot Certified ProAdvisor team.
Reviewed and maintained by the accounting team at TechBrot Inc., an independent Certified QuickBooks ProAdvisor firm serving New York nonprofits and charities remotely. Pricing reflects TechBrot's New York engagement ranges; CHAR500, Form 990, and audit-threshold references reflect Charities Bureau rules current as of the date below and are reviewed periodically — confirm your filing tier with the Charities Bureau or your CPA. TechBrot prepares the books; any required audit or review is performed by an independent CPA, who files.
Reviewer
David Westgate · 40+ years operational accounting experience
Standards
Fixed-fee, written scope · Client retains QuickBooks ownership · Audit/review performed by an independent CPA · No audit, legal, or tax-filing claims (out of scope) · No fabricated data
Last reviewed: June 2026
Make every CHAR500 a handoff, not a scramble.
Book a free books review. We'll look at your QuickBooks file and fund structure, show you where compliance and funder-reporting gaps are hiding, and send a written fixed-fee quote within 3 business days. No pitch.
TechBrot is an independent Certified QuickBooks ProAdvisor firm. We provide bookkeeping, QuickBooks, payroll, and advisory services and coordinate with your CPA or EA. We do not perform audits or reviews, provide legal advice, file tax returns, or represent clients before tax authorities; any required nonprofit audit or review is performed by an independent CPA. QuickBooks is a registered trademark of Intuit Inc.; TechBrot is not affiliated with Intuit Inc.