Small Business & Nonprofit Finance Blog

This is Part 1 of 4 in the Nonprofit Year-End Series, a guide to closing out your fiscal year, filing your 990, and walking into audit season prepared. The Funder Meeting That Changed Everything A few years ago, I got a call from a client who had just left a meeting with a program officer at a foundation she had been working hard to build a relationship with. She was shaken. The meeting had started normally enough. They were discussing her organization's programs, outcomes, a

By Jasmine Thompson | Stellar Consulting Inc. A nonprofit executive director I'd known for years admitted something to me that I suspect a lot of people in her position feel but rarely say out loud: "Jasmine, I dread the financial portion of our board meetings. I put the reports in the packet and then hold my breath hoping no one asks me anything I can't answer." Let's fix that. The Story Behind the Silence She'd been leading her organization for eight years. By every measure

By Jasmine Thompson | Stellar Consulting Inc. A client called me after receiving an email from a program officer she'd had a great relationship with for years. The email was about $4,200 of expenses she'd charged to a federal grant that the grant language didn't cover. She'd been a good steward of that grant in every other way, she just hadn't caught this one detail. Here's what happened, and more importantly, how we made sure it never happened again. The Call I Never Want Yo

By Jasmine Thompson | Stellar Consulting Inc. One of the first things I ask a new nonprofit client is: "Do you receive any federal funding?" If the answer is yes, the next question is: "Has anyone walked you through 2 CFR 200?" In almost every case, the answer is no, even from organizations that have been receiving federal grants for years. That always stops me in my tracks. Not because I'm surprised anymore, but because I know what that gap can cost an organization, in audit

By Jasmine Thompson | Stellar Consulting Inc Nonprofits and community-based organizations face a financial compliance burden that most for-profit businesses never encounter. Federal awards, state contracts, city and county grants, each comes with documentation requirements, reporting standards, and audit exposure that can sink an organization if the financial infrastructure isn't built to handle it. The good news: the right technology makes a lot of this manageable and attain

By Jasmine Thompson | Stellar Consulting Inc Running a nonprofit or community-based organization today requires a level of financial sophistication that most organizations weren't built for and that funders increasingly expect. The mission is what drives you. The compliance is what keeps you funded. And somewhere in between, the financial management of the organization often becomes the thing that keeps executive directors and finance staff up at night. I've spent over 20 yea

You don’t need a huge finance department to stay compliant. You need a system that matches how grants work. 1) Start with the grant requirements (before you spend a dollar) Before spending begins, get clear on: the budget categories (and any restrictions) reporting deadlines match requirements (if any) documentation standards whether costs must be tracked by program, location, or funding source If you don’t translate the grant terms into your accounting system early, you’ll e

Grant funding is a powerful way to grow your mission (or your business). But once the award letter comes in, many leaders realize something fast: getting the grant is only step one. The real work is staying compliant—while still keeping day-to-day finances clear enough to make good decisions. If you’ve ever thought: “We’re doing the work… but I’m not sure we’re tracking it correctly.” “I’m scared of an audit—even though we’re not doing anything wrong.” “I need financial repor