Fund Accounting for Nonprofits: How to Track Every Fund in Your Books

Fund accounting for nonprofits is the bookkeeping method that tags every gift, grant and expense to a specific fund, so an organization can show what each dollar paid for. GAAP requires the two net asset classes under FASB ASU 2016-14, net assets with donor restrictions and net assets without donor restrictions, not a fund structure. Each fund maps to one of those two classes.