US-Based Nonprofits – The end of the year is coming up fast! Make sure your books are tightened up and the beginning of 2025 will be a breeze.

The end of the year is a crucial time for non-profit organizations in the US. Proper financial management, compliance reviews, and donor engagement can set the stage for continued success. This 10-step guide covers key tasks non-profits should complete to ensure a smooth transition into the new year.

1. Review Financial Statements

Why it Matters: Accurate financial records ensure transparency and facilitate year-end reporting.

Action Steps:

• Review income statements, balance sheets, and cash flow reports.
• Compare actual financial results with budget projections.
• Investigate discrepancies and adjust records accordingly.

2. Reconcile Accounts

Why it Matters: Reconciliation ensures that all financial transactions are properly recorded and accounted for.

Action Steps:

• Reconcile all bank, credit card, and investment accounts.
• Review outstanding checks or pending deposits.
• Correct any errors or inconsistencies.

3. Organize Donation Records

Why it Matters: Proper donation tracking supports donor engagement and compliance with IRS regulations.

Action Steps:

• Update donor records, including contact details and donation histories.
• Prepare year-end giving summaries for major donors.
• Ensure all gifts are properly classified and acknowledged.

4. Conduct a Compliance Check

Why it Matters: Compliance with federal, state, and local laws ensures continued tax-exempt status.

Action Steps:

• Review IRS filings, including Form 990.
• Ensure state charity registrations are current.
• Verify compliance with employment laws and insurance requirements.

5. Prepare for Tax Filings

Why it Matters: Timely and accurate tax filings prevent penalties and maintain good standing.

Action Steps:

• Gather necessary documents for IRS Form 990 and state filings.
• Ensure W-2s and 1099s for employees and contractors are ready.
• Consult with a tax advisor if needed.

6. Evaluate Grant and Funding Deadlines

Why it Matters: Staying ahead of grant and funding deadlines ensures financial sustainability.

Action Steps:

• Review existing grant agreements for reporting deadlines.
• Prepare necessary performance and financial reports.
• Identify new funding opportunities for the coming year.

7. Engage Donors and Supporters

Why it Matters: Year-end fundraising and donor recognition strengthen long-term relationships.

Action Steps:

• Send personalized thank-you notes or holiday cards.
• Launch a year-end fundraising campaign.
• Share impact stories and organizational milestones.

8. Review and Update Strategic Plans

Why it Matters: Strategic planning aligns organizational goals and activities.

Action Steps:

• Assess progress on current strategic goals.
• Identify areas for improvement and growth.
• Set goals and action plans for the new year.

9. Conduct a Board Review

Why it Matters: A strong and engaged board supports effective governance.

Action Steps:

• Review board member roles and responsibilities.
• Conduct performance evaluations and solicit feedback.
• Recruit new board members if needed.

10. Back-Up and Secure Data

Why it Matters: Data security protects sensitive information and ensures continuity.

Action Steps:

• Back up all financial, donor, and operational data.
• Use secure cloud storage or external drives.
• Review cybersecurity policies and train staff on best practices.

By following these 10 essential steps, non-profits can close out the year with confidence, ensuring operational readiness and continued mission impact in the coming year.