How an Accountant Can Earn More by Managing Accounts for Nonprofits

For accountants, expanding services to nonprofits can be both financially rewarding and personally fulfilling. Nonprofit organizations require specialized financial management due to their unique funding structures, tax-exempt status, and compliance requirements. Below are various services you can offer to nonprofits, along with validated income ranges from reliable sources.

1. Bookkeeping and Day-to-Day Financial Management

Nonprofits need accurate bookkeeping to manage donations, grants, and expenses. A part-time nonprofit bookkeeper can earn between $18 and $23 per hour, while full-time bookkeepers typically earn $34,000 to $67,000 annually, depending on the region and experience level ​(ServiceBizBooks)​(Salary.com). If you offer outsourced bookkeeping services, you could charge $2,000 to $3,500 per month, depending on the complexity of the nonprofit’s operations ​(OneSource by Aldridge Borden –).

Image 1: An accountant using specialized software to reconcile nonprofit donations and grants.

2. Financial Reporting for Compliance

Nonprofits must file regular financial reports such as Form 990 to maintain their tax-exempt status. For preparing these reports, you can typically charge between $1,000 and $2,500 per report, depending on the size and complexity of the nonprofit ​(ServiceBizBooks)​(Salary.com).

Image 2: An accountant reviewing detailed financial reports for a nonprofit organization.

3. Tax Planning and Compliance

Though tax-exempt, nonprofits still need to adhere to strict IRS regulations. Offering tax advisory services can yield $150 to $400 per hour, translating to $5,000 to $10,000 annually for comprehensive tax planning per client ​(OneSource by Aldridge Borden –)​(Nonprofit Law log).

4. Grant and Fund Management

Nonprofits that rely on grants need to ensure compliance with donor requirements and manage grant allocations meticulously. Accountants offering grant management services can charge $3,000 to $5,000 per grant cycle, depending on the complexity of the funds being managed ​(ServiceBizBooks)​(Mission Edge).

5. Financial Strategy Consulting

Offering consulting services to help nonprofits develop long-term financial strategies can be highly lucrative. Nonprofit financial strategy consulting typically earns $3,000 to $6,000 per project, depending on the organization’s size and financial complexity​ (National Council of Nonprofits)​(Mission Edge).

6. Auditing Services

Nonprofits need audits to maintain transparency with donors and ensure compliance with regulations. Auditors specializing in nonprofits can charge between $5,000 and $15,000 per audit, depending on the organization’s size and audit requirements ​(National Council of Nonprofits).

Image 4: An accountant conducting a compliance audit for a nonprofit organization.

7. Financial Training for Nonprofit Staff

Training nonprofit employees on financial best practices can also be a revenue stream. Workshops and webinars generally bring in between $1,000 and $3,000 per session ​(OneSource by Aldridge Borden –)​(National Council of Nonprofits).

8. Automating Nonprofit Accounting Systems

Helping nonprofits transition to automated accounting systems can save them time and reduce errors. You can charge $2,500 to $7,500 for implementing and customizing accounting software ​(Salary.com).

9. Fundraising Financial Analysis

Nonprofits rely on effective fundraising, and offering financial analysis services for fundraising efforts can generate between $3,000 and $10,000 per project ​(Nonprofit Law Blog)​(Mission edge).

10. Risk Management for Nonprofits

Nonprofits face unique financial risks, especially in managing fluctuating donations and grant cycles. Offering risk management services at $150 to $300 per hour can help nonprofits mitigate financial risks and plan for long-term stability ​(National Council of Nonprofits).

Conclusion

Expanding into nonprofit accounting services provides a fulfilling way to diversify your business while tapping into substantial earning opportunities. From $18 per hour for basic bookkeeping to $15,000 per audit, accountants can capitalize on the growing need for specialized financial services within the nonprofit sector​ (ServiceBizBooks)​(Salary.com)​(Mission Edge).

References:

1. GrowthForce. (n.d.). How Much Do Bookkeeping & Accounting Services for Nonprofits Cost? Retrieved from GrowthForce.
2. Salary.com. (n.d.). Nonprofit Accountant Salary. Retrieved from Salary.com.
3. National Council of Nonprofits. (n.d.). Compensation for Nonprofit Employees. Retrieved from Council of Nonprofits.
4. Mission Edge. (n.d.). A Beginner’s Guide to Nonprofit Accounting. Retrieved from Mission Edge.