Kantivo Nonprofit Edition brings FASB ASC 958 compliance, donor-restricted fund tracking, and functional expense allocation to charities of every size. Audit-grade reporting, modern UX, and a price small organizations can actually afford.
Start Free TrialMost charity bookkeeping happens inside generic small-business software, and most of those tools weren't designed for the way nonprofits actually work. Restricted gifts get tracked in spreadsheets. Functional expense splits get reconstructed at audit time. Net asset classifications get explained to the auditor over the phone. Kantivo Nonprofit Edition replaces all of that with first-class features that an audit firm will recognize on sight.
The Henderson Family Foundation wires $25,000 restricted to a new walk-in refrigerator. Your bookkeeper creates a "Capital Campaign — Walk-In Refrigerator" donor restriction once. Every dollar of that gift gets tagged to the restriction; the Statement of Activities automatically shows it in the "With Donor Restrictions" column. Six months later the refrigerator is installed — one click on "Release Restriction" auto-generates the reclassification journal entry and moves $25K from temporarily restricted to unrestricted net assets. Your annual audit takes hours instead of weeks.
Pick "Nonprofit (FASB ASC 958)" when you create a company and every report — Statement of Activities, Statement of Functional Expenses, Statement of Financial Position — uses the correct nonprofit terminology and column structure from day one.
Track every restricted gift with its donor, original amount, restriction type (purpose, time, or permanent), and release condition. Tag transactions and invoices to the right restriction so the column math on the Statement of Activities is correct without manual reclassification.
Categorize every expense account as Program Services, Management & General, or Fundraising. The Statement of Functional Expenses matrix populates automatically — exactly the format Form 990 filers and auditors expect.
Net Assets Without Donor Restrictions, With Donor Restrictions (Temporary), and With Donor Restrictions (Permanent). Equity-section presentation matches the FASB 958 standard rather than being squeezed into a "Retained Earnings" line that doesn't fit.
When a restriction condition is met (project complete, time elapsed, milestone hit), one click generates the standard reclassification journal entry: Dr Net Assets With Donor Restrictions — Temporary, Cr Net Assets Released from Restrictions. No manual JEs, no risk of getting the sign wrong.
Every donor's giving for the year rolls into one IRS-compliant acknowledgment letter. Kantivo carries the substantiation language IRC §170(f)(8) requires, splits cash from non-cash gifts, and handles quid pro quo gifts by showing the reduced deductible amount. Generate the whole year in one run and email them out.
Every nonprofit company starts with a 35-account chart tuned for 501(c)(3) operations: pledges receivable, restricted cash, contributions accounts split by restriction, all expense accounts pre-tagged with their functional classification.
It is the second week of January and the statements have to go out. In Kantivo you pick the tax year and click once. Mrs. Alvarez gave $500 in February, $1,200 to the building fund in April, $250 in June, and $300 at the fall banquet — where she and her husband received a dinner Kantivo valued at $75. Her letter lists all four gifts, totals $2,250, subtracts the $75 of dinner, and states plainly that $2,175 is deductible. The upright piano the Reeds donated in September appears in its own section, described but deliberately unvalued, because the IRS does not permit a charity to place a value on donated property. Fourteen donors have no email address on file, so instead of skipping them Kantivo hands you a printing list. Nothing is silently dropped, and every statement issued is logged so a second run cannot double-send.
FASB ASC 958 specifies four required statements. Kantivo produces all of them on demand, formatted exactly the way an audit firm expects to see them.
The nonprofit equivalent of an Income Statement. Three columns (Without Donor Restrictions, With Donor Restrictions Temporary, With Donor Restrictions Permanent) plus a Total column. Net Assets Released from Restrictions automatically appears as the offsetting reclassification line, netting to zero across columns.
Matrix view: rows = natural class accounts (Salaries, Rent, Supplies, etc.); columns = Program / Management & General / Fundraising / Unclassified / Total. Unclassified accounts are surfaced explicitly so you can fix them before audit.
The nonprofit Balance Sheet. Assets and Liabilities sections work normally; the Net Assets section automatically splits into the three FASB 958 classifications with current-year change rolled into each class.
Direct-method cash flow statement with operating, investing, and financing activities. Works the same way as Kantivo's standard cash flow report — just with nonprofit-appropriate labels.
Disclosure-quality supporting schedule listing every active restriction with original amount, released amount, remaining balance, and release condition. Subtotaled by restriction type for the auditor's narrative.
Worklist of restrictions whose conditions appear satisfied. Your team reviews and clicks Release when ready — no auto-releases, full human-in-the-loop control.
Organizations funded by grants live with two recurring questions: what is left on this award, and where did it go? Kantivo derives both straight from your ledger. Run a grant report any time and it already contains everything posted up to that moment — there is no quarterly spreadsheet to rebuild, nothing to re-key, and no gap between what you entered and what the report shows.
A community arts nonprofit receives $95,000 from a family foundation across three annual payments, earmarked for its after-school program. The bookkeeper creates one purpose-restricted fund holding the funder, the award, and the release condition. Each annual payment is tagged to that fund when it is deposited. Program salaries, studio rent, and materials get tagged to a matching Class. Three reports then maintain themselves: Grant Budget vs. Actual carries awarded, consumed, available, and percentage used on one row, expandable to the accounts beneath; the Schedule of Net Assets by Restriction reports awarded, released, and still-restricted balances for that foundation; P&L by Class reports what the program has actually consumed. When the foundation asks for an interim update in March, it takes about a minute.
Record a grant once as a tracked restriction carrying funder, award value, restriction category, release condition, and live balance. Awards spanning several years or paid in tranches need no special handling.
Grant draw invoices and direct foundation deposits both expose a Donor Restriction picker. Choose the award once while posting, and revenue splits correctly into restricted and unrestricted columns everywhere downstream.
Attach a Class to expense lines named after the award, then pull P&L by Class for any window to see that award's consumption account by account — the view a program officer is really asking for.
One schedule lists every award on a single page with its original value, cumulative releases, outstanding restricted balance, funder identity, and condition text, subtotaled by restriction category.
Meeting a condition and clicking Release generates the FASB reclassification entry automatically and refreshes the Statement of Activities. Releases are never automatic; a person always approves each one.
Awarded funds you have not yet collected have a home immediately — Grants Receivable is part of the nonprofit chart Kantivo seeds when the company file is created.
A single grid carrying one row per award: value awarded, consumed in the window you chose, consumed since inception, still available, and the share already used with a progress indicator. Open a row to reveal the expense accounts underneath it. Anything consumed beyond its award turns red immediately.
Pull up Grant Budget vs. Actual and the arts award reads $95,000 granted, $18,400 consumed this quarter, $71,300 since inception, $23,700 still available, 75.1% used. Opening that row reveals where it went — instructor wages, studio rent, materials. None of it was assembled by hand; the grid interrogates the ledger, so an entry keyed twenty minutes ago is counted. Narrow the dates to the award period and you have the attachment the foundation asked for.
Grant Budget vs. Actual measures consumption against the award value — the figure your funder committed to. What Kantivo will not do today is store the itemized budget from your proposal (wages $48,000, occupancy $9,200, materials…) and report actuals against each of those categories individually. Should your funders mandate budget-to-actual at that depth, say so — requests here are frequently shipped the same day they arrive.
From a single small charity to a multi-entity nonprofit federation to the CPA firm that audits them, there's a plan that fits.
For single 501(c)(3) organizations. FASB ASC 958 reporting, unlimited donor-restricted funds, functional expense allocation, all nonprofit statements.
For multi-entity nonprofits — parent + chapters, fiscal sponsors, federated affiliates. Multi-entity consolidation, named program records for grant and program cost allocation, advanced functional allocation. (Grant tracking by restricted fund and P&L by Class come with every nonprofit tier.)
For solo CPAs and bookkeepers specializing in nonprofit clients. Remote access to unlimited client files, nonprofit adjusting entry templates, batch reporting.
For CPA firms with a dedicated nonprofit practice. Everything in Accountant Nonprofit + whitelabel client portal + ability to spin up client books on your own install.
Nonprofit Edition is shipping in Kantivo v2.0. Every plan includes a 30-day free trial with full functionality. The nonprofit chart of accounts, donor restriction tracking, and all five FASB 958 reports work from day one — no migration script, no manual setup.
Start your free 30-day trial and see how a tool built for charities actually feels different.