Non-Profit Accounting Services

How Porte Brown Supports Non-Profit Organizations

Not-for-profit organizations, ranging from professional and trade associations 501(c)6 to charitable organizations 501(c)3, arts and educational organizations, and foundations, are facing some of the most dramatic changes in IRS tax reporting requirements on Form 990 – Return for Organizations Exempt From Income Tax. These rapid changes require the expertise of a qualified accountant or a specialist in not-for-profit organizations.

Unlike traditional accounting for businesses, a CPA for non-profits needs to be highly specialized and requires a strong knowledge of non-profit reporting, exemptions, and budgeting. The complex financial internal controls surrounding this sector are why it's so important to find a CPA for non-profits who understands the internal intricacies of not-for-profit accounting.

Porte Brown has long provided accounting services to non-profit organizations. By helping with audit and accounting needs, Porte Brown has assisted many organizations for decades. Through our commitment to excellence, each not-for-profit accountant on our team has contributed to serving and building our reputation as the go-to non-profit accounting firm for Chicago and its surrounding communities.

What to Expect from Our Non-Profit Organization Accounting

Our accounting for non-profit organizations goes beyond bookkeeping. We provide expert counsel, compliance support, and practical strategies to empower you to focus on your mission.

Expert Accounting Advice

We provide specialized non-profit accounting advice, offering guidance on key nonprofit accounting documents such as the statement of functional expenses, statement of cash flows, and the chart of accounts. Our accountants also help you implement accounting best practices, select the right accounting software, and establish strong internal controls to improve financial reporting accuracy.

Regulatory Compliance

Maintaining compliance is essential for your organization’s financial transparency and tax-exempt status. We help ensure your filings—such as IRS Form 990, Form 990-EZ, and state tax returns—are accurate and timely. Our experts identify deductible program expenses, categorize fundraising expenses, and develop policies and procedures to reduce risk and demonstrate accountability to board members and donors.

Focus on Your Mission

With Porte Brown managing your nonprofit bookkeeping and financial reporting, you can devote more resources to serving your community. Our team provides actionable insights into cash flow, revenue, and expenses, and long-term sustainability. By improving financial transparency and reducing overhead expenses, we help you build trust with donors and stakeholders while protecting your organization’s mission.

What Is Non-Profit Accounting?

Non-profit accounting is the process of tracking, auditing, reporting, and analyzing the financial statements of organizations that operate without retaining a profit.

As one of the leading CPA firms specializing in not-for-profit accounting, Porte Brown ensures clients maintain compliance while maximizing opportunities for growth. We guide over 200 non-profit organizations with everything from fund accounting and nonprofit financial statements to annual tax filings and bookkeeping and accounting.

Our team also provides software recommendations, budget development, and infrastructure support. Whether you need assistance with net assets reporting, overhead costs, or establishing financial policies, we tailor our accounting services to your unique mission.

Proud to serve:

• Charitable Organizations 501(c)3
• Professional & Trade Organizations 501(c)6
• Educational Organizations
• Foundations
• Social Welfare or Advocacy Organizations
• Religious Organizations
• Labor Organizations
• Business Leagues
• Social & Recreational Clubs

Services include:

• Audit & Review Services
• Yellow Book Audits
• A-133 Audits
• 403(b) Retirement Audits
• Form 990 Compliance
• Tax Preparation Including Federal & State Filings
• Tax Credits
• On-site Monthly & Quarterly Accounting
• Compliance Audit Representation
• Functional Expense & Budget Consulting
• Grant Request Preparation
• Organization Formation Assistance
• Risk Assessment Framework Development
• Porte Brown Technology Solutions
• Retirement & Employee Benefit Services

What are Non-Profit Accounting Best Practices?

Non-profit accounting best practices help ensure accurate reporting, donor trust, and long-term stability.

Key practices include:

• Maintaining accurate nonprofit financial statements that detail assets and liabilities, net income, and expenses.
• Preparing a clear income statement and balance sheet that reflects the organization’s financial health.
• Regularly reviewing financial records and conducting internal or external audits.
• Using accounting and bookkeeping systems tailored to nonprofits.
• Ensuring financial transparency by sharing reports with board members and stakeholders.
• Monitoring cash flow to anticipate funding needs and align program costs with available resources.

Following these practices allows nonprofits to maintain compliance, build trust, and demonstrate stewardship to the communities they serve.

Industry involvement:

Porte Brown and our employees are active in the community, members of industry organizations, and professional accounting associations. The financial management of a non-profit is a unique process, which is why you want a CPA for non-profits who is familiar with the local industry. Our non-profit accountants are members of several Chambers of Commerce and industry organizations spanning the multiple practice areas in which we operate. Our involvement with the following organizations provides a forum for sharing ideas and resources to provide accounting services for non-profits in a consistently superior manner:

• American Institute of Certified Public Accountants
• Association Forum of Chicagoland
• Association of Fundraising Professionals
• Illinois CPA Society
• PrimeGlobal
• Arts & Business Council of Chicago
• Association of Consultants to Nonprofits
• Forefront
• .OrgCommunity

Commitment to Quality and Continuing Education for Our Team and Yours

Our commitment to quality cannot be underestimated. When the Quality Review program was being implemented in Illinois, we served on the Quality Review Executive Committee for the duration of the Committee's existence, until the program was fully operational. We monitor our quality control system continuously throughout the year and subject our audit and accounting policies and procedures to an independent outside review (referred to as a peer review) every three years, as required by our membership in the American Institute of Certified Public Accountants. Porte Brown LLC’s quality control system is based on the AICPA’s quality control standards.

The American Institute of Certified Public Accountants (AICPA) is dedicated to helping its members maintain the highest standards in conducting quality audits. To help CPAs meet the challenges of performing quality audits for clients in this complex area, the AICPA offers firm-based voluntary membership centers for firms that perform audits. Porte Brown LLC is a dedicated member of the following audit quality centers:

• AICPA Private Companies Practice Center (PCPS)
• AICPA Governmental Audit Quality Center (GAQC)
• AICPA Employee Benefit Plan Audit Quality Center (EBPAQC)
• AICPA | PCPS Center for Plain English Accounting

We are very proud to demonstrate our commitment to quality and integrity. Our last Peer Review was performed by KerberRose SC, Certified Public Accountants. Here's a copy of our most recent Peer Review Report.

We have firm representation on seven different ICPAS committees and regularly participate in educational opportunities, both local and national. As part of our firm’s associations with these organizations, we receive a wide range of support, including education, training, contacts, and resources to help us better serve our clients and improve their competitiveness in individual marketplaces. Our focus is on receiving the best education possible and then turning it around and providing the best education possible to our clients.