What makes accounting for a New York nonprofit different?
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.
What is the CHAR500 and when is it due?
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, plus a filing fee that depends on how you are registered: an Article 7-A fee, and for EPTL and dual filers an EPTL fee scaled to year-end net worth, not to contributions; the CHAR500 instructions carry the current amounts. We keep the books so the financials that go into it are clean and ready; your CPA completes and files it.
Does my nonprofit need an audit, a review, or neither?
It scales with your gross revenue and support. Under New York Executive Law §172-b, a registered charity with gross revenue and support over $1 million files an independent CPA’s audit report, one from $250,000 to $1 million files a CPA’s review report, and one at or below $250,000 files an unaudited financial report. Earlier fiscal years used a $750,000 audit line, so older guidance shows that figure; 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.
Why can’t TechBrot do our audit?
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 bookkeeping and advisory 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.
How do you track restricted funds and grants?
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.
What is functional-expense allocation and why does it matter?
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.
How much does nonprofit bookkeeping cost in New York?
Monthly bookkeeping for a New York nonprofit runs $500–$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.
How do we get started?
Start with 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 senior bookkeeper 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.