Strengthening Nonprofit Financial Management with Holdings

Holdings for Good is expanding its work with nonprofit organizations and state associations across the United States to strengthen nonprofit financial management, governance, and long‑term sustainability. This article explains how the company partners with nonprofits, why financial policies and systems matter, and what nonprofit leaders can expect when they collaborate with a mission‑driven financial services partner rather than a traditional bank.

How Nonprofits Manage Money Shapes Their Impact

Nonprofit organizations operate in complex financial environments. They must balance programs, fundraising, and community needs while maintaining clear accounting records, complying with tax and audit requirements, and reporting transparently to stakeholders. Strong financial management is not only about software or a bank account; it is about policies, internal control, and leadership practices that protect the organization and advance its mission.

Many nonprofits still manage accounting and expense tracking with spreadsheets or disconnected systems, making it difficult to maintain an accurate chart of accounts, reconcile cash, and prepare timely financial statements. When budgets, balance sheets, and income statements are hard to produce or interpret, the board of directors and finance committee have limited insight into risk, cash flow, and sustainability. In moments of economic stress or a pandemic, this lack of visibility can undermine both programs and fundraising.

Holdings for Good works with nonprofits to build financial practices that follow generally accepted accounting principles while reflecting the realities of day‑to‑day operations. The goal is for nonprofit leaders, including the chief executive officer and chief financial officer, to see the same information and use it for strategic planning, resource allocation, and risk management.

Why Banking Structure Matters for Nonprofit Finance

Banking relationships are central to nonprofit financial management. Organizations typically maintain at least one checking account, possibly multiple deposit accounts for restricted grants, and sometimes a separate bank account for a line of credit or loan. In addition, many nonprofits use online banking, credit card programs, and remote deposit tools to process payments, reimbursements, and fundraising revenue.

Traditional business banking often treats all balances the same, without regard to program restrictions, grant requirements, or the need to separate operating cash from reserve funds. Nonprofit banking requires a different approach:

• Aligning accounts with the chart of accounts and budget categories so that transactions flow cleanly into accounting software.

• Distinguishing operating checking accounts from reserve, investment, or money‑market accounts, where interest rates, risk, and liquidity differ.

• Ensuring that online banking and payment solutions support appropriate internal control, including dual approvals, role‑based access, and password security.

Holdings for Good focuses specifically on nonprofit checking and treasury management, helping organizations match each bank account to a clear purpose. The company’s digital tools and payment solutions support both day‑to‑day expense management and longer‑term planning, such as saving for program expansion, facilities, or mortgage obligations.

From Overhead Anxiety to Financial Transparency

Nonprofit leaders frequently report anxiety about overhead, especially when funders or donors focus on program expenses without understanding the cost of accounting, payroll, and compliance. A healthy organization needs policies that clarify which expenses belong in overhead, which are direct program costs, and how to handle shared services such as technology, marketing, and facilities.

Holdings for Good encourages nonprofits to document financial policies that address:

• Expense approval and reimbursement, including accounts payable procedures and travel guidelines.

• Use of corporate credit cards, debit cards, and payment platforms, with clear limits and conflict‑of‑interest safeguards.

• Payroll processes, including how salaries are allocated across programs for financial reporting and grant compliance.

• Thresholds for capitalizing equipment or technology purchases, in line with financial audit expectations and tax rules.

By clarifying these policies, organizations can explain overhead to funders in a way that supports transparency and sustainability. When financial statements and Form 990 filings show consistent treatment of expenses, stakeholders gain confidence that the nonprofit is managing money responsibly.

Building Systems for Audits, Grants, and Compliance

Many nonprofits eventually face a financial audit or single audit, whether due to size, grant requirements, or board expectations. Preparing for an audit requires accurate financial statements, reconciled accounts, and documentation of internal control. It also requires evidence that the organization follows its own policies, including procurement rules, conflict‑of‑interest procedures, and committee oversight.

Holdings for Good supports nonprofits in organizing information needed for audits and grant reporting. This includes:

• Structuring the chart of accounts so that revenue, expenses, and accounts receivable tie directly to programs and grants.

• Separating restricted, temporarily restricted, and unrestricted funds within deposit accounts and financial statements.

• Ensuring that monthly reconciliations connect the general ledger, bank statements, and online banking records.

• Providing exportable data for auditors, including transaction histories, payment approvals, and documentation of reimbursements.

When nonprofits can provide clear reports for audits and Form 990 disclosures, they reduce risk and strengthen relationships with regulators, foundations, and major donors. Consistent reporting across fiscal years also supports better forecasting and strategic planning.

Working With State Associations and Community Networks

Holdings for Good does not work only with individual organizations. The company also collaborates with state and regional associations that serve as hubs for nonprofit financial literacy and governance. These associations provide training on topics such as board responsibilities, risk management, and financial reporting, and they convene nonprofit leaders to share insights and best practices.

By partnering with associations, Holdings for Good helps deliver education on nonprofit finance, nonprofit banking, and treasury management to a broader audience. The company participates in webinars, workshops, and office hours that address questions about:

• Setting up checking and savings accounts that match program and grant structures.

• Choosing accounting software and integrating it with online banking and payment tools.

• Evaluating interest rates, fees, and service structures for credit lines, loans, and other financial services.

• Managing risk around cyber‑security, passwords, and digital access to accounts.

This collaborative model allows nonprofit organizations in many regions to learn from shared examples and to see how peers approach financial policy, cash flow management, and sustainability.

What It Looks Like to Work With Holdings for Good

When a nonprofit begins working with Holdings for Good, the process typically starts with a review of existing banking relationships, accounting systems, and financial policies. Rather than focusing solely on products, the conversation centers on how the organization’s finance, leadership, and board teams currently understand their numbers.

Key steps often include:

• Mapping programs, grants, and revenue streams to a clear chart of accounts.

• Determining which bank accounts are necessary for operating cash, reserves, and restricted funds.

• Reviewing internal control structures, including who approves payments, who reconciles accounts, and how conflicts of interest are managed.

• Assessing whether current software, automation, and digital tools are reducing manual bookkeeping or adding complexity.

From there, Holdings for Good helps design a banking and treasury management structure that supports forecasting, monthly reporting, and long‑term planning. This might involve new nonprofit checking accounts, specialized deposit accounts, or changes in how payment cards and reimbursement processes operate.

Throughout the relationship, the company aims to act as a partner rather than only a vendor. Nonprofit leaders can discuss questions about interest, debt, and risk, consider whether a line of credit or loan is appropriate, and evaluate how financial strategies align with mission and community needs.

Financial Literacy, Governance, and the Role of Data

Effective nonprofit financial management depends on more than documents and software; it requires ongoing financial literacy for staff, leadership, and the board of directors. Board members must be able to read a balance sheet and income statement, interpret variances between budget and actual results, and understand the organization’s exposure to debt and cash‑flow risk.

Holdings for Good encourages organizations to treat financial reports as tools for conversation, not just compliance. When committees review monthly dashboards that highlight cash levels, accounts payable, accounts receivable, and key revenue sources, they can make timely decisions about hiring, fundraising campaigns, or program adjustments.

In addition, boards need understandable information about tax filings such as Form 990 and, when applicable, Form 1023 or Form 1099 reporting related to contractors. Clear explanations of these documents help trustees connect governance responsibilities with real‑world decisions about spending, reserves, and investment.

Technology, Automation, and Human Judgment

The growth of digital tools and automation in accounting and online banking has changed how nonprofits handle day‑to‑day finance. Automation can streamline bookkeeping, payment processing, and reporting, but it also introduces new risks if internal controls and passwords are not managed carefully.

Holdings for Good’s approach recognizes that technology must support, not replace, human judgment. Automation can:

• Match transactions to accounts in the general ledger.

• Generate recurring reports for leadership, staff, and committees.

• Support remote deposit, bill payment, and expense approvals.

However, leaders and finance teams remain responsible for reviewing results, questioning anomalies, and ensuring that financial policies are followed. Good governance requires both accurate data and thoughtful interpretation.

Funding, Philanthropy, and the Broader Economy

Nonprofits operate within a broader economy that influences revenue, interest rates, and donor behavior. Changes in market conditions affect investment income, borrowing costs, and the value of endowments or reserve funds. Public policy and philanthropy trends also shape grant opportunities, tax exemption rules, and expectations for transparency.

By providing tools and insights that connect day‑to‑day transactions with long‑term trends, Holdings for Good helps nonprofits understand how shifts in funding, interest rates, or the market may affect their budgets and strategic planning. This perspective supports more resilient organizations that can adapt to uncertainty while continuing to serve their communities.

A Partner for Nonprofit Financial Health

In every collaboration, the aim is to help nonprofits build systems that support clear reporting, responsible stewardship, and mission‑aligned decisions. That includes:

• Banking structures tailored to nonprofit finance and treasury needs.

• Accounting practices that support audits, grants, and board oversight.

• Digital tools that reduce manual work while preserving internal control.

• Education that advances financial literacy for staff and volunteer leaders.

Holdings for Good positions itself as a trusted banking and financial services partner for nonprofits seeking clarity, transparency, and sustainability. By aligning financial management with mission, the company supports organizations in turning information into insight—and insight into impact for the communities they serve.