Bookkeeping for nonprofits.
FigureWise gives nonprofits fund-accounting books that boards and funders can trust: restricted and unrestricted money tracked separately, grant spending reported against budgets, and expenses allocated across program, admin, and fundraising.
The numbers to watch.
| # | Metric | |
|---|---|---|
| 01 | Months of operating reservesUnrestricted liquid assets divided by monthly expenses is the survival metric. Boards and funders both read it as the first indicator of organizational health. | Unrestricted liquid assets divided by monthly expenses is the survival metric. Boards and funders both read it as the first indicator of organizational health. |
| 02 | Program expense ratioThe share of spending that goes to mission is scrutinized by donors, grantmakers, and rating sites. Knowing yours, and the allocation logic behind it, keeps the story defensible. | The share of spending that goes to mission is scrutinized by donors, grantmakers, and rating sites. Knowing yours, and the allocation logic behind it, keeps the story defensible. |
| 03 | Restricted vs. unrestricted balancesTotal cash means little if most of it is committed. Tracking the split monthly prevents the classic error of spending restricted funds on operations. | Total cash means little if most of it is committed. Tracking the split monthly prevents the classic error of spending restricted funds on operations. |
| 04 | Grant budget vs. actual burnUnderspending a grant risks returning funds; overspending means eating costs. Monthly burn tracking against each grant budget keeps both failure modes visible early. | Underspending a grant risks returning funds; overspending means eating costs. Monthly burn tracking against each grant budget keeps both failure modes visible early. |
Where nonprofits books go wrong.
01
Restricted funds mixed with operating money
Donor-restricted gifts and grant dollars are not yours to spend freely, but in one bank account they look identical to operating cash. Books that do not track restrictions invite the worst nonprofit surprise: discovering you have already spent money that was committed elsewhere.
02
Grant tracking and funder reporting
Each grant arrives with its own budget, allowed costs, and reporting deadlines. Reconstructing what was spent against which grant at report time is painful and error-prone; tracking it continuously is the only sane approach.
03
Functional expense allocation
Nonprofits must report expenses by function: program, management and general, and fundraising. Staff who wear three hats and rent that serves every function need a defensible allocation method, because these numbers appear on the Form 990 that funders and watchdogs read.
04
Board oversight with volunteer capacity
Boards carry fiduciary duty but meet monthly at best, and treasurers are volunteers with day jobs. Without clear, timely financial reports, oversight becomes rubber-stamping, which serves no one when questions come later.
What we put in place.
- Fund accounting with restricted and unrestricted balances tracked separately and released properly as restrictions are met.
- Grant-level tracking of spending against each funder's budget, so reports are generated, not reconstructed.
- A documented functional expense allocation method, keeping program, admin, and fundraising percentages defensible on the Form 990.
- Board-ready monthly packages: statement of financial position, statement of activities, budget vs. actual, delivered on a schedule your treasurer can rely on.
- AI flags unusual transactions and coding drift; a human bookkeeper reviews everything, because funder trust rides on these numbers.
Nonprofits, answered.
Better decisions start here.
A free, no-commitment review of your nonprofits books.