Hi, k.lass. I worked in the NFP sector for several years and have quite a bit of experience with grant accounting. For most NFPs, grants are THE revenue component, so it's important for the grant accountant to know contracts backwards and forwards – with particular attention on reporting requirements and eligible costs per contract budget. Some grants will be performance based others will be cost reimbursements. Yet others will be deferred. If any of the grants have a federal component – which many local and state grants do – you have to tag and track them very carefully. This is critical if the NFP is subject to a single audit (aka, A-133 or 2 CFR 200).
Most grant accountants are responsible for billing the funder and are usually responsible for resolving discrepancies. You’ll maintain the grant files (executed contracts, funder correspondence, etc.) and will have to build relationships with your contract monitors. This is very important because they are a valuable resource. Also, they’ll do your monitoring so having a good relationship with them makes life easier for everyone. You'll likely have internal reporting duties as well, such as maintaining a grants dashboard so leadership knows the status of grants. You may also support development with their grant writing efforts. Also, you will most likely have audit schedule prep responsibilities.
I wouldn't worry about the NFP sector blocking you from returning to industry later on – it's all FASB. In my opinon, if you do well in an accounting role for a successful NFP, you'll be fine in industry. The reason I say this is that funding for administration in the NFP is really limited. Funders want to pay for programs, they don't want to pay for HR/Accounting/IT/Ops, so that means all of those functions are operating with way less than what's necessary to do the same amount of work in industry. If there's an A-133 audit in the mix, accounting feels the burn big time. I think the NFP teaches a valuable lesson about resourcefulness. And what for-profit can't appreciate that? NFP is also kind of a niche for an accountant, so if you get your foot in the door, and like it, I think you can be optimistic about your career prospects in the sector.
I liked NFP work for the most part. I worked in human services and low-income housing. There is something very satisfying about taking your accounting skills and applying them to a mission that resonates with you – as opposed to slinging random widgets that will end up in a land fill someday or working for a bunch of unsavory types who cross ethical lines in the name of profits. I found the quality of people in the NFP to be very endearing and dedicated.
If you haven't already, I recommend you go to Guidestar and review the last three 990's for the NFP you're considering. It'll show you what's going on with net assets, where they're spending their money and if they have an A-133. Plus, if you bring your observations to the interview, they'll appreciate your due diligence.
I also recommend the book, “A Leap of Reason: Managing Outcomes In an Era of Scarcity” by Mario Morino. It’s got some good insight on the challenges NFPs face.
Leap of Reason
I hope this was helpful. Sorry for the essay. Best wishes for making a decision that will be right for you.
FAR: 80 (10/28/2016)
AUD: 85 (2/6/2017)
REG: DSD (Dragon Slayer Deployed) (5/31/2017)
BEC: DSIT (Dragon Slayer in Training) (8/2017)
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