Nonprofit Financial Health Checklist
A board-ready audit of the financial practices every nonprofit should have in place.
About This Resource
Nonprofits face unique financial pressures — restricted funds, grant compliance, board oversight, and Form 990 preparation — that most accounting firms are not built to handle. This checklist walks executive directors and board members through the 40 financial controls, policies, and practices that separate a financially healthy nonprofit from one that is one audit finding away from a crisis.
What's Inside
Fund Accounting & Restricted Assets
- Restricted vs. unrestricted fund tracking
- Grant expense allocation procedures
- Endowment investment policy statement
Internal Controls
- Dual-signature and approval thresholds
- Bank reconciliation cadence
- Expense reimbursement policy review
Board Oversight & Reporting
- Monthly financial statement package
- Budget vs. actual variance review
- Audit committee structure and independence
Form 990 Readiness
- Schedule of functional expenses
- Related-party transaction disclosures
- Key person compensation documentation
Get Started
From Reading to Doing.
Every Best Practicify engagement begins with a 45-minute advisory session — a direct conversation with the practitioner who will lead the work, with enough information at the end to make a sound decision about whether the next step is a proposal, an RFP, or something else.