2026 Nonprofit Seminar – Keiter Knowledge Sharing

Strengthening financial foundations for not-for-profit organizations

Keiter hosted its 2026 Not-for-Profit Update on January 13, 2026, bringing together nonprofit leaders, finance teams, and board members for a focused discussion on accounting structure, financial close processes, compliance considerations, and endowment oversight. Led by members of Keiter’s Not-for-Profit team, including Amy Menefee, Mary Margaret Sword, Elizabeth Lewis, and Jayme Mika, the seminar provided practical guidance on financial topics nonprofits frequently encounter while offering attendees the opportunity to earn continuing professional education (CPE) credit.

Accounting department structure and key roles

The seminar opened with a discussion on accounting department structure and the roles needed to support effective nonprofit financial management. For many mid-sized organizations, a core team includes a controller or finance director, a staff accountant, and an accounts payable and receivable specialist. Depending on complexity, additional roles such as a grant accountant, payroll specialist, or financial analyst may be appropriate.

Presenters emphasized the importance of strong technical skills in nonprofit GAAP, fund accounting, grant compliance, and internal controls, along with analytical and communication skills. Common pitfalls discussed included over-reliance on a single individual, lack of documented processes, delayed reconciliations, and failure to properly track donor restrictions. Segregation of duties was reinforced as a foundational internal control, with compensating controls recommended when staffing limitations exist.

Monthly close best practices

The presenters next reviewed best practices for strengthening the monthly close process. Establishing a standard close calendar with clear cut-off dates helps ensure consistency and sets expectations for staff and leadership. Documented month-end checklists were highlighted as a key tool, particularly for organizations experiencing growth or turnover.

Additional recommendations included prioritizing reconciliations based on risk and materiality, reconciling pledge and contribution activity between development and accounting, reviewing restricted net assets on a regular basis, and ensuring proper recognition of grants and contributions throughout the year. A disciplined close process supports timely, accurate reporting and reduces audit adjustments.

Schedule G: Fundraising and gaming activities

The seminar also addressed Schedule G of Form 990, an area that often raises questions for nonprofit organizations. Schedule G applies when certain fundraising or gaming thresholds are met and is designed to provide transparency to the IRS and the public.

Part I applies to professional fundraising activities, Part II to fundraising events, and Part III to gaming activities. Presenters reviewed reporting thresholds, disclosure requirements, and common compliance considerations, emphasizing the importance of proper documentation, written agreements, and awareness of unrelated business income tax implications when applicable.

Endowment oversight and governance considerations

The final portion of the seminar focused on endowments and related governance responsibilities. Presenters reviewed donor-restricted, board-designated, and term endowments, along with common misconceptions around spending limitations.

Endowments are governed by the Uniform Prudent Management of Institutional Funds Act (UPMIFA), which allows for prudent spending when supported by a clear, board-approved spending policy. The discussion also addressed underwater endowments, required financial statement disclosures, and the importance of documenting board decisions related to endowment designation and use. Strong board oversight, accurate reporting, and clear donor communication were identified as key components of effective endowment management.

Conclusion

Keiter’s 2026 Not-for-Profit Update reinforced the importance of strong financial infrastructure in supporting nonprofit missions. By investing in appropriate accounting structures, strengthening internal controls, maintaining disciplined close processes, and ensuring compliance with reporting and governance requirements, nonprofits can enhance transparency, support informed decision-making, and position themselves for long-term sustainability.

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