How to become a non-profit accountant

How to become a Non-Profit Accountant

Becoming a non-profit accountant involves a combination of education, professional certification, and relevant work experience. Here is an overview of the pathway to the career:

High School Diploma
Complete your high school education or an equivalent qualification. Focus on subjects like mathematics and computer science, as they provide a foundation for understanding the principles of financial accounting. Classes in English and English composition are key to begin building communication skills, which are also important, as non-profit accountants often present findings to non-accountants, including CEOs and lawyers.

Bachelor’s Degree
The basic requirement to work in non-profit accounting is a bachelor’s degree, usually in accounting, finance, or business administration. Coursework typically includes subjects like financial accounting, managerial accounting, cost accounting, auditing, taxation, and business law. Courses in economics, statistics, and information systems are also beneficial.

Non-Profit Management Coursework
Consider combining your accounting, finance, or business administration major with a minor in public administration or, if available, non-profit management. These courses of study can provide specific knowledge about the non-profit sector.

Internships
Seek out internships or volunteer positions in non-profit organizations to gain practical experience. This helps in understanding the unique financial needs and regulatory requirements of non-profits.

Entry-Level Positions
Start in entry-level accounting positions, such as a staff accountant or bookkeeper, preferably within a non-profit organization. This experience is crucial for understanding the day-to-day financial operations of a non-profit.

Key Skills Development

• Financial Reporting – Learn to prepare and analyze financial statements specific to non-profits.
• Fund Accounting – Gain expertise in fund accounting, which is essential for tracking and managing funds according to donor restrictions.
• Grants Management – Understand the intricacies of managing grants, including compliance and reporting requirements.

Master Degree (Optional)
Pursuing a master’s degree in accounting, finance, or non-profit management can further enhance your expertise and career prospects.

Certifications and Professional Organizations
There are several certifications and memberships in professional organizations that can benefit non-profit accountants, enhancing their skills, improving their job prospects, and demonstrating their commitment to the field. Among the most recognized are:

• Certified Public Accountant (CPA) – While not specific to non-profits, the CPA designation, awarded by the American Institute of Certified Public Accountants (AICPA), is highly respected and demonstrates a high level of expertise in accounting. It is beneficial for non-profit accountants due to its rigorous standards and broad recognition.
• Certified Nonprofit Accounting Professional (CNAP) – This certification, offered by the Nonprofit CPAs Alliance, is specifically designed for accounting professionals working in non-profits. It focuses on non-profit accounting principles, fund accounting, and regulatory compliance.
• Certified Nonprofit Executive (CNE) / Certified Development Executive (CDE) / Certified Nonprofit Consultant (CNC) – These certifications are offered by the National Association of Nonprofit Organizations & Executives (NANOE), the only nationwide membership organization in the US for executives seeking credentials in the art of non-profit capacity-building. Practitioners who hold a prestigious NANOE credential are ‘best practice’ experts who grow charitable enterprise and discover new ways to advance the common good.
• Certified Fund Raising Executive (CFRE) / Advanced Certified Fundraising Executive (ACFRE) – While primarily for fundraisers, these certifications, offered by the Association of Fundraising professionals (AFP), can complement a non-profit accountant’s role, especially if they are involved in managing donations and fundraising activities.
• Certified Management Accountant (CMA) – Although not specific to non-profits, the CMA designation covers management accounting, financial planning, and analysis, which can be useful for non-profit accountants involved in budgeting and financial strategy.
• Certified Internal Auditor (CIA) – The CIA credential is relevant to non-profit accounting, especially in the context of internal control, audits, and investigations. It is offered by a global organization, the Institute of Internal Auditors (IIA).
• Certified Fraud Examiner – Offered by the Association of Certified Fraud Examiners (ACFE), the CFE certification is relevant to non-profit accountants involved in internal auditing and fraud prevention and detection within non-profits.

Along with the certifying bodies referenced above, the following organizations also offer resources, access to industry research, and networking and professional development opportunities:

• Association of Nonprofit Accountants and Finance Professionals (ANAFP) – ANAFP is the largest professional association dedicated solely to those working in and/or interested in the field of non-profit accounting and finance. It works to promote, educate, and foster collaboration for those professionals and to be a resource to the general public on nonprofit accounting and finance matters.
• National Council of Nonprofits – This organization offers resources and best practices for non-profits, including financial management and accounting practices.
• The Nonprofit Quarterly (NPQ) – While not a professional organization per se, NPQ is a non-profit magazine publication providing research-based articles and resources to educate the non-profit sector.

Continuing Education
Stay updated with the latest developments in accounting standards, tax laws, and regulations affecting non-profits through continuing education and professional development courses.