Nonprofits

Nonprofit Bookkeeping, Grant Tracking, and Fractional CFO Services in El Paso and New Mexico

Earickson Bookkeeping and Taxes provides bookkeeping, grant tracking, board reporting, and fractional CFO services for nonprofit organizations in El Paso, Las Cruces, and across Texas and New Mexico. Nonprofit accounting has more in common with government accounting than with business bookkeeping: restricted funds, grant compliance, and accountability to the public. I'm a Certified Government Financial Manager (CGFM) with a career in public-sector finance, so that's the discipline I bring to every nonprofit client.

What I set up for nonprofits

Restricted and unrestricted funds kept separate. Donations come in two kinds: with donor restrictions and without. A restricted gift has to be tracked until it's spent for its stated purpose. I set up your books so you always know how much of your bank balance you can actually use.

Grant-by-grant tracking. Each grant gets its own budget and its own reporting. Budget-versus-actual reports by grant make reimbursement requests and funder reports match your books, instead of being rebuilt from scratch every time.

Functional expense allocation. Funders, your board, and the IRS all want to see what you spend on programs, on management and general, and on fundraising. Shared costs like rent and salaries need a reasonable, documented allocation method. I set one up and apply it consistently.

Board-ready monthly reports. That means a statement of financial position, a statement of activities, and a budget-to-actual report your board can actually read, plus a cash flow forecast once you're ready for one.

Filing and compliance deadlines

• Form 990 series, every year. Form 990-N if gross receipts are normally $50,000 or less; Form 990-EZ if gross receipts are under $200,000 and total assets are under $500,000; the full Form 990 otherwise. It's due the 15th day of the 5th month after your fiscal year ends. An organization that misses three consecutive years automatically loses its tax-exempt status.

• Single audit, if you spend federal money. For fiscal years beginning on or after October 1, 2024, an organization that spends $1,000,000 or more in federal awards in a year needs a single audit. The threshold counts federal funds spent, not funds awarded, so a large multi-year grant can push you over in the year the money goes out.

• Indirect costs. Under the 2024 Uniform Guidance revision, organizations without a negotiated rate can use a de minimis indirect cost rate of up to 15%. Your books need to support it.

Texas and New Mexico specifics

• Texas: Federal tax-exempt status doesn't automatically exempt you from Texas sales tax or franchise tax. You have to apply to the Texas Comptroller for those exemptions.

• New Mexico: Many receipts of 501(c)(3) organizations are exempt from gross receipts tax, but income from unrelated business activity can still be taxable. Qualifying purchases may require a nontaxable transaction certificate on file.

Fractional CFO for nonprofits

Many nonprofits don't need a full-time CFO, but their boards and executive directors need more than a monthly bookkeeping report. My fractional CFO service adds:

• Weekly cash flow visibility

• Budget-to-actual analysis

• Forecasting

• Grant budgeting

• Audit preparation

• Support when you're ready to hire finance staff

It's scaled to what your organization actually needs.

How I work with nonprofits

• Monthly bookkeeping in the online accounting software I use, set up with funds, classes, and grant tracking

• Monthly board reporting package

• Form 990 preparation support and year-end audit preparation

• Payroll and quarterly filings

• Fractional CFO engagements for organizations with budgets from roughly $500,000 to $10 million

Frequently asked questions

What's the difference between nonprofit bookkeeping and regular bookkeeping?

Nonprofits have to track money by restriction and by grant, report expenses by function (program, management, fundraising), and answer to donors, funders, and the public. A business mostly needs to know whether it made a profit. A nonprofit needs to show where every restricted dollar went.

Which Form 990 do we file?

Form 990-N if gross receipts are normally $50,000 or less. Form 990-EZ if gross receipts are under $200,000 and assets are under $500,000. The full Form 990 for everyone else. Some organizations, such as churches, aren't required to file.

Do we need a single audit?

Only if you spend $1,000,000 or more in federal awards in a fiscal year beginning on or after October 1, 2024. That includes federal money passed through a state or city agency.

We're a small, volunteer-run organization. Is this overkill?

Not necessarily. Small organizations often have the most to gain from simple, clean books: they make grant applications easier, keep the 990 on time, and protect the volunteers responsible for the money.

Ready for books your board can read? Schedule a New Client Call.

Official sources: IRS, Annual Exempt Organization Return: Who Must File · eCFR, 2 CFR 200.501 Audit Requirements · Texas Comptroller, Exempt Organizations · New Mexico Taxation and Revenue Department

General information, current as of October 2026. Not tax or legal advice for your specific situation.