How to Find Pro Bono Accounting Services for Your Nonprofit
Free accounting services. It sounds too good to be true. Yet, many nonprofits we know default to looking for free accounting services, especially when they’re getting started. Bookkeeping and other financial services fall in the dreaded category of “overhead,” which is notoriously difficult to find funding for. What’s more, many donors still assess nonprofits based on the ratio of overhead to program expenses. (Although, that practice is losing popularity due to its oversimplification of what is needed to operate an effective mission-driven organization.) So, many nonprofits turn to free accounting help–or try to.
You might think that approaching an accounting firm that specializes in nonprofits and asking for free services because your work is “mission driven” would be an easy sell. It isn’t. All their clients are doing important work. It’s going to take more than simply being mission driven.
Before you start looking for pro bono services, it’s important to ensure that your organization is ready to benefit from them. It’s unrealistic to expect that you will receive pro bono services from the same person or accounting firm forever, so you need to be thinking about a sustainable transition to paid services or another provider in the future. This means that you, as the client, need to be ready to invest time and energy in both supporting and learning from the person or firm providing free services.
Why Would an Accountant Want to Provide Free Services?
The most important question you can ask yourself is: Why would an accountant want to provide free bookkeeping for my organization? CPAs’ answers to that question will differ, but here are the factors that motivate Beancount to take on a pro bono client. We usually support 2-5 organizations with free services each year.
Relationships
We take on pro bono work when someone we trust asks us to. A lawyer we work with once referred a nonprofit that had gotten into a mess because of poor choices by their former accountant to us. Our colleague genuinely admired the people running the organization and had already decided to waive his own fees. He asked if we could offer a reduced rate, too. That was an easy yes.
Your mission area
For many years Beancount’s Founder, Sakar Pudasaini, ran a social enterprise in global education, so he has a soft spot for nonprofits doing that kind of work. There are a lot of important issues nonprofits work on around the world, but our friends and collaborators refer pro bono projects that to us match this interest.
Your Responsiveness
One of the largest risks of taking on a pro bono client is providing services to an organization that isn’t ready, and ultimately, putting in free work that will have little or no impact. If you are responsive, timely, and enthusiastic from the get-go, it’s an easier yes for us. If we are concerned that you will not be responsive or take the work seriously because it is free, our instinct is to opt out.
Opportunities for Board Service
Instead of relegating an accounting professional to the role of “volunteer”, is there an opportunity to elevate them to board service, perhaps as your organization’s treasurer? Sakar serves on at least two boards per year, and often provides accounting advice in that capacity. However, board service can be a big lift, so alignment is a key factor when we make decisions about serving on a board. We also consider whether it is a “working board” or a “governance board”. Make clear with potential board members with accounting expertise how your board contributes and your expectations around capacity. That way, they can assess whether or not they are the best match for board service at your organization.
Where to Look for Free Services
One Easy Starting Point: Your Local CPA Society
In fact, Sakar is currently serving on the board of an organization he learned about on Colorado Society of CPAs (COCPA). Plenty of CPAs want to serve in the community and know their skills can help. While it can help to have a CPA who knows nonprofits, CPAs who mostly work in the for-profit world may be more interested in offering pro-bono services.
In addition, networks like Social Venture Partners (there is a Boulder and a Denver chapter) often can connect you to professionals who want to offer pro-bono services and make a difference.
Ask Friends and Colleagues Who They Know
Referrals do matter. Don’t dismiss early-career folks looking for something to build their resume either. If they bring the energy and commitment, they can likely deliver. And they can always reach out to more experienced peers when they’re stuck.
And Show Up
Go to CPA society events like happy hours and mixers. Talk to people, let them get to know you and see what you care about.
How to Ask for Pro Bono Services
When you do make the ask, don’t try to guilt the professional into saying yes because you are mission-driven. Everyone has the right to say no and opt to provide their hard-won professional skillset at a fair market rate. You are asking for a large favor, so come humbly. Ask for help because you need it, not because your work matters more than others’.
This article is for general informational purposes only and does not constitute professional accounting, tax, or legal advice. Tax laws, regulations, and accounting standards change frequently, and the application of rules can vary based on your organization’s specific facts and circumstances. Before acting on anything you read here, consult a qualified professional who can advise you based on your situation.
