Question 1

What is nonprofit fund accounting?

Accepted Answer

Fund accounting tracks money by purpose—restricted, temporarily restricted, and unrestricted—so nonprofits can show donors, boards, and auditors exactly how each gift was received and spent. Unlike generic bookkeeping, fund accounting keeps donor restrictions visible in real-time balances and financial statements.

Question 2

How does fund accounting help with Form 990 reporting?

Accepted Answer

AlignMint maps your chart of accounts to Form 990 line items from day one, so revenue, expenses, and functional categories flow into year-end worksheets without manual translation. That reduces CPA cleanup and helps finance teams answer board questions faster.

Question 3

Why is QuickBooks not enough for nonprofit fund accounting?

Accepted Answer

QuickBooks and Xero use classes or tags to simulate funds, but they do not natively track restricted fund balances, connect donor gifts to accounting entries, or produce nonprofit-standard statements. Nonprofits often outgrow workarounds when they need real fund balances, grant reporting, and integrated donor records.

Question 4

Can we keep using Ramp?

Accepted Answer

Yes. AlignMint stays the books, and Ramp stays where your team spends on cards. The connection sends your chart of accounts and funds to Ramp, then posts coded card charges to the right fund. A check written in the office still uses Record payment, and donor gifts stay on your giving pages. The Ramp section in Financial Integrations is not open yet. Until it is, record the card expense in AlignMint. The Ramp Cards article under Fund Accounting in Help docs explains the workflow.

Question 5

How does AlignMint track restricted funds?

Accepted Answer

Every donation, grant, bill, reimbursement, and journal entry can be assigned to a specific fund. AlignMint shows current balances by fund at any time—restricted gifts stay restricted, and spending is visible against each purpose without side spreadsheets.

Question 6

Can AlignMint connect to our existing bank?

Accepted Answer

Yes, on Plus and above. AlignMint imports bank transactions through Plaid from thousands of U.S. banks and credit unions, so most organizations keep the bank they already use. If an institution is not listed, add the account manually and upload statements. Free plans use that manual path. Bank reconciliation is Pro and Enterprise.

Question 7

What are sub-funds (Accounting Funds)?

Accepted Answer

Sub-funds, also called Accounting Funds, are reporting slices available on Pro. They break down income and expenses under an operational fund so you can track a mission trip, building phase, or grant without creating another organization or giving page. Donors give to the fund. The sub-fund only splits the reporting.

Track every fund by purpose.

See every fund without chasing spreadsheets.

Keep funds clear

Prepare reports faster

Keep the books current

Keep the bank you use

Keep Ramp for cards

Accounting stays current as gifts and expenses land.

See how it works with the rest of AlignMint.

Fund Accounting FAQ

Ready for real fund accounting?