Ready for Year-End? Your Nonprofit Financial Management Checklist 2025

With the holidays in full swing, financial management may not feel like the most festive item on your list. Between supporting your team, stewarding donors, and keeping programs running, it’s easy for year-end accounting tasks to slip down the priority list. 

Year-end—no matter your fiscal year—offers a powerful opportunity to clean up your books, strengthen internal controls, and set your organization up for success in the new year. To help you stay organized and compliant, we pulled together a practical, nonprofit-focused financial management checklist. 

Calendar Year-End Financial Management Checklist

Whether your fiscal year ends in December or later, these items deserve attention before December 31. 

Revisit Vendor and Contractor Information 

Nonprofits must prepare and issue 1099s to certain vendors and contractors by the end of January—even if you operate on a fiscal year-end. For the 2025 tax year, a 1099-NEC or 1099-MISC is required for payments over $600 to LLCs and sole proprietors. 

Now is the time to confirm that you have complete and accurate information on file: legal names, tax identification numbers, and current addresses. A quick review now prevents headaches—and penalties—later. 

Review State Registration and Grant Reporting Requirements

Many charitable registrations, grants, and government contracts follow a calendar-year schedule. Review your state filings and grant compliance folders to ensure nothing is expiring or due as the year resets.  

Prepare for Year-End Giving 

Most nonprofits see a surge in donations at the end of the year as donors plan for tax season and look for meaningful ways to support causes they care about. Resources like Charity Navigator’s year-end giving insights can help you anticipate donor behavior. 

Ensure your giving page works smoothly, your messaging is current, and your team is ready to record gifts promptly and accurately. 

Reach Out to Donors 

A simple, genuine touchpoint goes a long way. Remind donors of the impact they helped create this year and thank them for being part of your mission. These messages deepen relationships—and can spark additional year-end support. 

Send Donor Acknowledgment Letters 

Any donor who contributes more than $250 must receive an acknowledgment letter they can use for tax purposes. 

If you’re behind on thank-you letters (it happens!), now’s the time to catch up so donors head into January with everything they need. For more guidance, you can also review the National Council of Nonprofits’ acknowledgment requirements. 

Nonprofit Fiscal Year-End Financial Management Checklist 

If your fiscal year wraps on December 31, here are the additional items to complete before closing your books. 

Catch Up on Data Entry 

Accurate, timely data is foundational to strong financial management. Ensure all transactions have been entered, coded clearly, and reconciled to bank and credit card statements. 

Strengthen your process using tools like the AICPA’s Internal Controls Guide for Smaller Entities. 

Recognize Revenue 

Under Generally Accepted Accounting Principles (GAAP), some revenue must be recognized before cash is received—especially common for multi-year or awarded-but-not-yet-funded grants. 

For more guidance, refer to FASB’s nonprofit reporting standards. 

Record In-Kind Donations 

In-kind contributions can be tricky. Large non-cash gifts often require a formal appraisal to determine fair market value, while smaller donated items or services may be estimated. 

For valuation guidance, refer to IRS Publication 561 on donated property and Candid’s overview of in-kind contributions. 

Create Formal Financials 

Once your books are closed, prepare your full set of year-end financial statements: 

• Statement of Financial Position 

• Statement of Cash Flows 

• Statement of Activities 

• Statement of Functional Expenses 

• Annual Report 

If preparing these statements isn’t your comfort zone, our team at BryMar CPA can support you.   

Plan Your Budget 

Review this year’s budget versus actuals to identify trends, surprises, and opportunities. Use those insights to refine and strengthen next year’s budget.  For planning guidance, see Propel Nonprofits’ budgeting resources. 

Consider Large Purchases 

If your organization made significant purchases—equipment, technology, furniture—verify how they should be treated under your capitalization policy. Should they be depreciated or expensed? 

If you don’t yet have a capitalization policy, year-end is an ideal time to create one. 

Moving Into the New Year With Confidence 

Year-end cleanups can feel daunting, but each step strengthens your organization’s financial clarity, compliance, and ability to plan proactively. 

At BryMar CPA, we partner with nonprofit teams throughout the year—checking in, reviewing milestones, and helping you stay audit-ready long before deadlines arrive. Whether you need support preparing for your upcoming audit or want a smoother, more strategic audit process, we’re here to help. 

Reach out to BryMar CPA today for audit prep or audit services tailored to how nonprofits operate.