NONPROFITS & CHURCHES
Financial stewardship that supports your mission
We provide full-service bookkeeping and financial management for churches and nonprofits so you can stay focused on the people you serve. Our team handles the accounting complexities, fund tracking, payroll, and reporting, while you focus on your ministry or mission.Accounting services built for mission-driven organizations
From local churches to community nonprofits, we provide the financial support faith-based and charitable organizations need. Our solutions address the specific accounting requirements of organizations that manage donor funds, restricted grants, and public accountability while serving their communities.THE CHALLENGE
Nonprofit accounting is different
(and requires specialized knowledge)
Churches and nonprofits face unique financial challenges that require expertise most accountants don’t have:
- Tracking restricted and unrestricted funds separately while maintaining clear records.
- Managing donor contributions and providing accurate contribution statements.
- Maintaining strong internal controls with volunteer board leadership.
- Preparing specialized tax filings like Form 990 (or knowing when it’s not required).
- Coordinating grant reporting with specific funder requirements.
- Handling clergy payroll and housing allowance properly for churches.
- Ensuring transparency and accountability to donors, boards, and the community.
OUR SOLUTION
Comprehensive financial management for faith-based and charitable organizations
With over twenty years of experience in ministry and nonprofit accounting, we understand exactly what churches and nonprofits need. Our services help you:
- Track restricted and unrestricted funds accurately with clear, transparent reporting.
- Process bills and coordinate with vendors to keep operations running smoothly.
- Manage payroll, including clergy housing allowances and volunteer coordination.
- Prepare monthly financial statements that boards and finance committees can actually use.
- Handle donor contribution statements and maintain detailed giving records.
- Prepare Form 990 or 990-EZ filings with accuracy and confidence (when required).
- Maintain strong internal controls that protect your organization and build donor trust.
Churches & ministries
We handle clergy payroll with housing allowance management, track tithes, offerings, and designated funds separately, prepare donor contribution statements, provide board and finance committee reporting, and maintain internal controls that work with volunteer participation. Important: Churches do not file Form 990, and we help ensure you remain fully compliant without it.501(c)(3) nonprofits
We prepare Form 990 or 990-EZ filings, manage grant and program reporting, provide budget versus actual board reporting, handle cost allocation and restricted grant tracking, and ensure your financial statements meet nonprofit accounting standards.Community organizations
Whether you’re a youth organization, community outreach program, or local foundation, we help you track program expenses separately, manage multiple funding sources, prepare reports for grantors and major donors, and maintain the financial transparency your stakeholders expect.
Religious nonprofits
Organizations with both religious and charitable purposes need specialized guidance. We understand the unique compliance requirements, handle restricted gift tracking for special projects, prepare appropriate tax filings based on your structure, and provide financial reporting that serves both ministry and accountability goals.FUND ACCOUNTING
Proper fund accounting is essential for churches and nonprofits. Donors, grantors, and board members need to see that funds are used appropriately. We help you:
- Separate restricted funds designated for specific purposes (building funds, mission trips, special projects) from unrestricted operating funds.
- Track donor intent so contributions given for specific purposes are used exactly as intended.
- Manage grant restrictions, ensuring grant funds are spent according to funder requirements and properly documented.
- Report by fund so boards and donors can see exactly how resources are allocated and used.
- Maintain compliance with FASB standards for nonprofit financial reporting.
You’ll have complete transparency about where every dollar came from and where it went, building trust with donors and protecting your organization’s reputation.
DONOR MANAGEMENT
Contribution tracking and reporting done right
Maintaining accurate donor records isn’t just good stewardship; it’s a legal requirement for tax-exempt organizations. We provide:- Detailed contribution tracking for every gift, whether cash, check, or online giving.
- Annual donor statements that meet IRS requirements for charitable contribution substantiation.
- Special gift documentation for non-cash donations, memorial gifts, and restricted contributions.
- Giving reports that help leadership understand donor patterns and plan stewardship activities.
- Acknowledgment support, ensuring timely thank-you letters and proper documentation for gifts over $250.
COMPLIANCE & REPORTING
Navigate nonprofit regulations with confidence
Nonprofit compliance requirements can be overwhelming, but we make them manageable:
- Form 990 preparation: We prepare accurate Form 990 or 990-EZ filings for eligible nonprofits, ensuring all schedules are completed properly and filed on time.
- Church exemptions: We help churches understand why they don’t file Form 990 and maintain documentation that supports their exempt status.
- Payroll compliance: We handle clergy housing allowances, minister tax considerations, and volunteer versus employee classifications properly.
- Grant reporting: We prepare detailed grant reports that satisfy funder requirements and support renewal applications.
- Board financial reports: We create monthly or quarterly reports that give boards the information they need to make informed decisions.
- Audit preparation: When audits are required, we maintain organized records and work with auditors to ensure smooth, efficient engagements.
Why churches and nonprofits choose Pesante Close
We understand the unique financial responsibilities of mission-driven organizations:
- Ministry experience: Over 20 years serving churches, ministries, and nonprofits with faith-sensitive guidance.
- Clear reporting: Transparent financial statements that boards, donors, and stakeholders can understand.
- Strong controls: Internal control structures that protect your organization and build donor confidence.
- Compliance expertise: Accurate Form 990 preparation, clergy payroll, and nonprofit-specific tax knowledge.
- Responsive service: Quick communication and dependable support when questions arise.
- Mission focus: We handle the financial details so you can focus on the people you serve.
FAQs
Get answers to common questions from churches and nonprofits.Does our church need to file Form 990?
No. Churches are automatically exempt from filing Form 990 under IRS regulations. However, if your church operates a separate nonprofit ministry or has unrelated business income, those activities may require separate reporting. We help you understand what applies to your specific situation and ensure full compliance without unnecessary filings.
How do you track restricted versus unrestricted funds?
We set up separate fund accounts for restricted gifts (building funds, mission trips, designated projects) and track them separately from unrestricted operating funds. Your monthly financial reports show balances in each fund, so leadership always knows how much is available for general operations versus specific restricted purposes. This ensures donor intent is honored and provides clear accountability.
What's involved in preparing our annual donor contribution statements?
We track all contributions throughout the year, including cash, checks, and online giving. In January, we prepare compliant donor statements that show total giving by individual or household. These statements meet IRS substantiation requirements and include any necessary disclosures for goods or services provided in exchange for contributions. We can also prepare statements quarterly or upon request for major gifts.
How do you handle clergy housing allowances?
Clergy housing allowances require special treatment for tax purposes. We properly designate housing allowances in board resolutions, track them separately on payroll records, report them correctly on W-2s (excluded from federal withholding but included for Social Security and Medicare), and provide documentation that supports the allowance if questioned. This ensures ministers receive the full tax benefit while your church maintains proper records.
How do you help with grant reporting requirements?
Each grant has specific reporting requirements from the funder. We track grant expenses separately, allocate shared costs appropriately, prepare financial reports in the format requested by funders, document how grant funds were used according to the approved budget, and maintain records that support grant compliance. This satisfies funders and supports future grant applications.