Bookkeeping
We manage accounts receivable, accounts payable, bank reconciliation, payroll processing and other essential daily financial transactions.
Fiscal Sponsor Organizations
At JFW Accounting Services, we’ve built a dedicated community of nonprofit accounting professionals who understand the unique financial needs of Fiscal Sponsorship Organizations.
When a nonprofit agrees to serve as a fiscal sponsor, it takes on far more than a legal arrangement. It becomes the financial steward for every project under its umbrella. Each project has its own funders, its own reporting requirements, and its own restricted funds that cannot touch anyone else’s money. That responsibility multiplies fast.
At five projects, a spreadsheet system starts to strain. At fifteen, it breaks. Accounting for fiscal sponsors at any real scale demands a structured, high-capacity system, not a workaround. JFW Accounting Services builds those systems and helps nonprofit organizations stay true to their values without a spreadsheet slip-up.
When a nonprofit agrees to serve as a fiscal sponsor, it takes on far more than a legal arrangement. It becomes the financial steward for every project under its umbrella. Each project has its own funders, its own reporting requirements, and its own restricted funds that cannot touch anyone else’s money. That responsibility multiplies fast.
At five projects, a spreadsheet system starts to strain. At fifteen, it breaks. Accounting for fiscal sponsors at any real scale demands a structured, high-capacity system, not a workaround. JFW Accounting Services builds those systems and helps nonprofit organizations stay true to their values without a spreadsheet slip-up.
Solving the Fund Tracking Puzzle: Model A vs. Model C
Fiscal sponsorship is not one thing. The two most common structures, Model A (Comprehensive Sponsorship) and Model C (Pre-approved Grant Relationship), carry different accounting obligations, and mixing them up creates serious compliance risk.
Under Model A:
- The sponsored project is fully integrated into the sponsor’s legal and financial structure
- The sponsor is the employer of record, the grant recipient, and the funder of record
- All revenue and expenses run through the sponsor’s books
Under Model C:
- The sponsor makes a grant to an independent organization that retains its own legal identity
The accounting treatment differs significantly between the two
Getting the structure right from the start protects the sponsor’s 501(c)(3) status and keeps auditors satisfied. It also determines how fiscal sponsorship fund tracking is configured in the system.
JFW Accounting Services uses Sage Intacct to create isolated financial environments for each sponsored project. Think of it as a walled garden. Each project’s funds live in their own dedicated bucket. Restricted dollars cannot cross into another project’s budget or cover unauthorized overhead. The firewall between projects is not a policy memo; it is built directly into the accounting architecture.
Automating Administrative Fees and Indirect Costs
Most fiscal sponsors charge a fee for their services, often a percentage of gross revenue received by each project. Calculating that fee manually across dozens of projects every month is time-consuming and error-prone. One missed calculation or misapplied rate can trigger a dispute with a project director or create a discrepancy in the audit.
JFW Accounting Services automates sponsorship fee calculations within Sage Intacct. When revenue is posted to a project, the system applies the applicable rate and records the fee transfer to the sponsor’s operating funds. No manual math, no end-of-month reconciliation scramble.
Indirect cost allocation for nonprofits is handled the same way. Shared costs like rent, insurance, software licenses, and administrative staff time need to be distributed across projects in a way that is fair, documented, and defensible.
JFW Accounting Services sets up allocation rules within the system so these distributions happen automatically each period. The methodology is consistent, the documentation is clean, and every project bears its appropriate share.
Mitigating Risk for the Sponsor Organization
A fiscal sponsor’s 501(c)(3) status is the foundation everything else rests on. If a sponsored project misuses funds, submits inaccurate reports, or fails to follow documentation standards, the sponsor can face IRS scrutiny. That risk does not stay at the project level.
JFW Accounting Services establishes consistent documentation standards across all sponsored projects. Contracts, grant agreements, expense approvals, and financial reports follow the same format and retention schedule regardless of which project they belong to. This uniformity makes audits predictable and protects the sponsor from liability created by inconsistent practices across a large portfolio.
Federal funding adds another layer. When a sponsored project receives a federal grant, Uniform Guidance (2 CFR Part 200) applies. That means stricter cost principles, procurement requirements, and audit thresholds. JFW manages the additional reporting layers that come with federal dollars, keeping the sponsor compliant even when only one project in ten has a federal award.
Scalability is where the accounting structure either holds or collapses. Adding a new project should not require hiring another accountant. JFW’s managed Sage Intacct model is built to absorb new projects without rebuilding the system from scratch. Each new project gets its own financial environment, and the sponsor’s administrative overhead stays controlled.
Strategic Leadership: The CFO Perspective
Multi-project nonprofit accounting is not just a bookkeeping challenge. It is a strategic management problem. A sponsor organization has to know whether it has the administrative capacity to take on new projects before committing to them. Taking on more than the system can support creates risk for everyone involved.
JFW’s outsourced CFO services give fiscal sponsors the forecasting tools to answer that question with data. How much administrative revenue is the sponsor generating from current fees? What would a new project require in staff time and system resources? Those answers should come from a financial model, not a gut check.
Project lifecycle management is equally important. Some sponsored projects are temporary. Others grow into something that warrants independent 501(c)(3) status. That transition involves a transfer of assets, a wind-down of the project’s position within the sponsor’s books, and often a final grantor report. JFW manages the financial side of the spin-off process so that the separation is clean, compliant, and well-documented.
A System Built for the Weight of the Work With JFW Accounting Services
Accounting for fiscal sponsors requires dimensional fund tracking, automated fee structures, airtight internal controls, and the reporting architecture to satisfy both individual grantors and external auditors. JFW Accounting Services builds that infrastructure using Sage Intacct, configured specifically for the hub-and-spoke model. We can help your organization successfully set up this critical software and keep your organization focused on its goals rather than manually fixing and reorganizing spreadsheets.
If your organization sponsors multiple projects and your current system is showing strain, contact us today to schedule a discovery call.
Chat with a Fiscal Sponsorship Organization advisor today to learn about our available service plans for your association:
• Reporting & Attestation: General ledger / Trial Balance, Cash Reconciliation, and Financial Statements
• Business Process Outsourcing: Accounts Payable / Bill Payment, Accounts Receivable / Collections, Cash Management and Reconciliation
• Virtual Controllership: Financial Statements, Comparative Reporting, Budgeting
• Virtual CFO: Financial Strategy, Financial Modeling, Market Analysis
We relish the opportunity to help you leverage your finances to make the biggest possible impact.
REQUEST A CLIENT ASSESSMENT TODAYServices Customized for Your Needs
JFW Accounting Services will gain you confidence in your accounting and financial trajectory. Our accessible team of experts is adept at open and transparent communication, resulting in a seamless partnership that consistently performs. We offer many specialized services that can be customized to your needs, strengths and budget.
Client Advisory Services
We kick off every relationship with a Client Assessment – helping us understand your organization’s unique needs.
BOOK A CLIENT ASSESSMENT TODAYGain Complete Confidence in Your Accounting
Your organization’s team should be focusing their time on what matters most – achieving your mission. That’s why we provide nonprofits with accurate data and transparent communication you can trust. With regular meetings to discuss your organization’s financial health, you’ll be confident that your organization is compliant, accountable and strategically utilizing your financial resources.
Individual Approach
We take an individual approach to each and every client, taking the time to thoroughly understand your problems, needs and goals. The result? Customized strategy and solutions that set your organization on a path to success.
Exceptional Customer Service
As an extension of your team, we are available when you need us. Always accurate, professional and on time, we are dedicated to helping everyone harness the power of their numbers to reach their true potential.
Team Of Industry-Leading Professionals
We are a reliable team of experts with decades of experience in business and nonprofit accounting. Our Nonprofit CPA’s are fully certified and regularly pursue professional education opportunities that keep their fingers on the pulse of accounting trends.
Hear From Some of Our Happy Clients
Customer satisfaction is at the heart of everything we do. We’ve proudly partnered with several nonprofits and businesses to enhance their accounting processes, understand their numbers and reach their financial goals.
We look forward to helping you achieve your financial goals!
GET STARTEDNON-PROFIT ORGANIZATION SERVICES
We can help maintain your nonprofit organization’s tax-exempt status by handling all of your monthly and quarterly financial accounting as well as your annual IRS reporting (Form 990) needs. Our team works collaboratively with our nonprofit clients to develop smart accounting systems informed by IRS rules, regulations and classifications.
We offer the following services:
- Accounting System Implementation, including aligning the Chart of Accounts, Program alignment and maintenance
- Monthly/quarterly review and compilation of your financial statements, including the statement of functional expenses and revenue support schedules
- Bi-weekly, semi-monthly and monthly payroll preparation
- Preparation of financial reports for your board of directors
- Grant administration, compliance, budget proposals & financial reports
- Reducing fraud risks and establishing fraud controls
- Implementation of effective budgeting practices
- Customized training for your accounting personnel
- Preparation of schedules for your annual 990 tax filing
- Consultation and review of initial start-up documentation, including incorporation and form 1023/1024
COMPILATIONS & AUDIT PREPARATION
A compilation involves an accountant preparing or assisting in preparing financial statements without expressing any assurances that the statements are accurate, complete, and/or in conformity with Generally Accepted Accounting Principles (GAAP). Unlike a review, few, if any, procedures are performed.
An audit is a formal examination of an organization’s accounts or financial situation. It is the top level of investigation performed on a business’ financial statement. We can help your organization prepare for external financial or regulatory audits. We will work with your internal management team to identify issues and develop and implement appropriate corrective action prior to your audit reviews. We will prepare and perform necessary testing as well as provide supporting documentation and work papers.
PAYROLL SERVICES
Are you considering outsourcing payroll? If so, you are not alone. Managing payroll is a time-consuming burden. Payroll is a necessary function of employing people, but it does not help create revenue or increase sales. Simply, payroll can be a drain on most employers’ resources. Outsourcing payroll helps reduce costs and increase available capacity for more important work.