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FASB accounting for churches: what you actually need to know

By The Church Krew Team · April 28, 2026 · 7 min read

Churches use fund accounting, not the department-based model of for-profit software. Here's the short version.

Restricted vs unrestricted

Donor-restricted gifts must be tracked separately from general funds. Mixing them is the most common audit finding.

ASU 2016-14

The FASB standard governing nonprofit financial statements. Your books should map cleanly to it.

Keeping it clean

Double-entry, funds (not departments), and statements you can generate on demand keep year-end calm.

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