Free nonprofit chart of accounts template & sample chart

If your chart of accounts (COA) is a spreadsheet someone built years ago that nobody fully understands, you're not alone. Many nonprofit finance leads inherit a COA that doesn't quite match how the organization actually operates, or they're setting up QuickBooks for the first time and wondering if they're doing it right.

A well-structured nonprofit chart of accounts is the foundation of accurate financial reporting, clean audits, and donor compliance. This guide walks you through what it is, how to set one up, best practices to follow, and a free template you can download and customize.

Key takeaways

• Categorize your accounts for easier organization 💰 A structured, numbered COA speeds up and improves the accuracy of your team's financial reporting.
• Distinguish restricted from unrestricted funds 🔒 Separating these keeps you compliant with donor agreements and ready for grant reporting.
• Review your chart of accounts regularly 🔎 An annual review ensures your COA continues to reflect how your nonprofit actually operates.
• Make it part of your financial management routine 💸 A well-maintained COA is the foundation of clean audits and confident decision-making.
• Streamline your nonprofit finances with Givebutter 🧈 Connect your fundraising data directly to your accounting workflow with Givebutter Plus's native QuickBooks integration.

What is a nonprofit chart of accounts?

A nonprofit chart of accounts (COA) is a numbered index of all your organization's financial accounts. It lists out where you'll find assets, liabilities, revenue, and expenses. Your COA is organized into categories and numbered, so it's easy for finance teams and auditors to use.

Why does a nonprofit need a chart of accounts?

In a Givebutter survey of 85 nonprofit professionals, 72% said they use accounting software to manage their finances. That drops to 61% among organizations that review their financials less frequently. The rest rely on spreadsheets and bank statements, which makes accurate reporting significantly harder.

A nonprofit needs a chart of accounts because it's the most reliable way to track income, expenses, and restricted funds. With funds grouped into relevant categories using a sensible indexing system, there's no more confusion over what lives where.

An organized chart of accounts enables nonprofits to:

• Properly track restricted and unrestricted funds 📊 Make sure you're meeting donor compliance requirements by clearly separating the two.
• Prepare accurate financial reports 📈 Deliver reports organized by your COA categories so your data is clear and easy to use for decision-making.
• Improve transparency and efficiency 🔍 Inform team members about projects, income categories, and where data can be found.
• Organize data ready for audits 🦾 Keep your COA organized and updated to help auditors to easily understand how your nonprofit operates.
• Maintain best practices ✅ Maintain clear financial indexes, records, and reports to ensure consistency and accuracy.

An organized chart of accounts gives you a better understanding of your nonprofit's finances, whether you're preparing reports, seeking funding, or planning ahead.

Download your free nonprofit chart of accounts template

Create your nonprofit chart of accounts with a free customizable template designed to get you up and running quickly.

Inside the template, you'll find:

• Instructions on how to get started
• An editable chart of accounts template
• A sample nonprofit chart of accounts

Use this template as your foundation, then adjust categories and numbering to fit your organization's needs.

Freebie alert!

Download your free nonprofit chart of accounts template →

How to set up a chart of accounts for a nonprofit

The simplest way to set up a nonprofit chart of accounts is to start with a spreadsheet or use the COA feature built into your accounting software. You can use the free template above or build your own from scratch.

Whichever method you choose, here are the steps to create your own nonprofit chart of accounts:

1. Create the basic structure

Charts of accounts typically follow a standard numbering system to organize financial categories:

• Assets (1000s)
• Liabilities (2000s)
• Net assets (3000s)
• Revenue (4000s)
• Expenses (5000s)

This structure clearly separates assets, liabilities, income, and expenses, making it easier to track and report on your finances. Our free template follows this same framework.

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2. Organize your funds into account types

With your structure in place, categorize your funds based on whether they're assets, liabilities, revenue, or expenses.

Here's what to include within your COA sections:

• Assets (1000s): Cash, accounts receivable, and fixed assets like buildings, equipment, and investments
• Liabilities (2000s): Accounts payable, deferred revenue, loans, leases, and multi-year grants that were paid upfront
• Net assets (3000s): Funds with donor restrictions and those without
• Revenue (4000s): Individual contributions, recurring donations, grants, event revenue, and membership fees
• Expenses (5000s): Program, fundraising, admin, and payment processing costs

It's tempting to create a new account for every program or expense type, but simpler is better. Start lean and add accounts only as needed based on your organization's size and complexity.

💡 Pro tip: Not all platforms support fund accounting natively. If yours doesn't, you may need to use classes or tags to track restricted funds and programs without creating dozens of new accounts.

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3. Check that you've included everything

Before sharing your chart of accounts with your team or board, review it carefully to make sure nothing is missing.

• Asset inventory
• Programs and projects
• Sources of income
• Regular expenses
• Bank statements

Your COA should reflect how your organization actually operates. If something feels off, adjust account names and structure until it fits.

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4. Review your chart of accounts regularly

Once finalized, your COA should become a living part of your financial records. Review it alongside your other financial statements, including your balance sheet, statement of activities, and cash flow statement.

It's common practice to review the chart of accounts annually and update it as your organization evolves. It's also helpful to clean it up before switching accounting systems or migrating data.

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Sample nonprofit chart of accounts

To help you imagine what a chart of accounts looks like in practice, we've created this sample for a fictional nonprofit. This organization is a regional nonprofit based in California. It hosts a large number of events and uses Givebutter Wallet as its financial home.

Here's what its chart of accounts looks like:

🔎 What this nonprofit chart of accounts example shows: This nonprofit has customized its COA to include separate categories for events and marketing, so it can clearly track how much it spends in each area compared to general fundraising costs.

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Nonprofit chart of accounts best practices

Once you understand the basics, your nonprofit's chart of accounts becomes much easier to manage. These best practices will help you keep it accurate, organized, and up to date:

• Follow the numbering system 🔢 COAs typically follow a standard numbering system, making it easier for you and your auditors to navigate.
• Group similar activities together 🔗 Instead of creating several accounts, group them by category (e.g., marketing, events, recurring donations).
• Introduce a clear naming convention 💬 Standardize how you name accounts to keep everything organized.
• Leave room to add new accounts 🌟 Assign account numbers with enough spacing between them so you can add new ones later without restructuring.
• Only keep accounts you actively use ✔️ Regularly review your accounts and combine or remove any you no longer use.
• Use accounting software to stay organized ⚖️ Stick to a consistent naming and numbering system within your nonprofit accounting software to make the whole process easier.

Learn more

Compare the best accounting software for nonprofits →

Streamline your nonprofit finances with Givebutter

A well-structured chart of accounts keeps your finances organized, improves reporting, and helps you make smarter financial decisions. But it works best when your tools are connected.

Givebutter's native QuickBooks integration automatically syncs donation data, reducing manual data entry and keeping your financial data consistent. You can also create a financial home for your donations with Givebutter Wallet and track every gift with robust donation management tools.

Sign up for Givebutter today to simplify your nonprofit's financial workflow.

FAQs about chart of accounts for nonprofit organizations

What is the Unified Chart of Accounts (UCOA)?

The Unified Chart of Accounts (UCOA) is a standardized framework nonprofits can use to organize their financial data. It's designed to be compliant with Form 990 reporting requirements, so it's very comprehensive. Smaller nonprofits may prefer a more streamlined version, like the one we've shared in the free template above.

How many accounts should a nonprofit have?

There's no fixed number that a typical nonprofit chart of accounts has, but there should be at least one account for each type: assets, liabilities, net assets, revenue, and expenses. From there, add detail based on your organization's size and complexity.

How do I track restricted funds in my chart of accounts?

Most nonprofits track restricted funds by separating them into distinct net asset accounts and using classes, tags, or fund tracking features within their accounting system. This approach gives you the accuracy auditors expect without overcomplicating your COA structure.

What's the difference between classes & accounts?

Accounts are the broader categories of transactions (e.g., revenue, expenses), while a class is an optional tag that adds an extra layer of detail, such as programs, grants, or departments. Many nonprofits use classes to track restricted funds without creating additional accounts.

What are the 5 categories in a chart of accounts?

The five core categories in a chart of accounts are assets, liabilities, net assets, revenue, and expenses. In for-profit companies, net assets are typically referred to as equity.