From Surviving To Thriving:
Transforming Nonprofit Finance Strategy

What's Inside This Guide

What donor and grant compliance tasks are due at year-end?
Donor acknowledgements, verification that in-kind donations are properly tracked and recorded, grant and contract reporting requirements, grant and expense tracking, and vendor/contractor verification for 1099s.

What tax forms do nonprofits need to complete by year-end?
IRS Form 990 and other relevant tax forms, contribution statements due by January 31, and IRS Form 1099 also due by January 31. All federal, state, local, and grantor compliance requirements should be confirmed as met.

What financial reporting should happen before year-end closes?
Annual reports reviewed for accuracy, including KPIs and financial ratios; a board meeting to review performance, budget, and strategy; confirmation of bank and fund balances; verification of grantor funding requirements; and a review of insurance policies and risk assessments.

What closing activities need to be completed at year-end?
Entering all payroll and related taxes and benefits, reconciling revenue and expenses, posting all donations received, completing the final month-end close, and, for organizations with physical inventory, a physical count with documented valuation methods. Fixed asset registers should also be reviewed and updated for any additions, disposals, or transfers.

Why does a year-end checklist matter for nonprofits?
It standardizes processes, increases accuracy, strengthens efficiency, grows the team's knowledge and confidence, ensures regulatory compliance, and reduces costs while improving audit readiness.

How does Martus help nonprofits get through year-end?
Martus replaces the chaos of manual, disconnected financial workflows with clarity, automation, and organization-wide confidence, so finance teams can focus on mission impact instead of manual reconciliation.