By ScoutFi

Year-End Financial & Compliance Update

For Our Nonprofit Board Partners
As 2025 comes to a close, we want to thank you for your leadership and oversight. Board service plays a critical role in nonprofit accountability, and we appreciate the opportunity to support you and your organization through accounting, compliance, tax, and payroll services.

2025 in Review

This year reinforced the importance of strong financial governance. With increased focus on transparency, funding accountability, and regulatory compliance, timely and accurate financial information remained essential for effective board decision-making.
In 2025, our work with nonprofit leadership and boards focused on:
  • Providing clear, reliable financial reporting to support oversight and planning
  • Maintaining compliance with federal, state, and payroll-related requirements
  • Supporting audit readiness, grant reporting, and required disclosures
  • Coordinating accounting and tax functions to reduce risk and inefficiencies
For many boards, this resulted in more consistent reporting, fewer compliance concerns, and improved confidence in financial stewardship.

Considerations for 2026

As you look ahead to 2026, we encourage boards to remain mindful of:
  • Ongoing compliance and filing responsibilities
  • Internal controls and financial policies that support accountability
  • The alignment of financial reporting with strategic and program goals
While regulatory requirements may continue to evolve, proactive financial oversight remains one of the most effective ways to protect the organization and its mission.

Additional Compliance and Funding Considerations

As part of ongoing financial oversight, boards may wish to remain mindful of several related areas that continue to draw increased attention across the nonprofit sector:
  • Benefits compliance, including health insurance and retirement or pension plans, requires ongoing monitoring and accurate administration.
  • Grant-related financial reporting, with clear and consistent language that supports funder expectations and accountability.
  • Budget versus actual review, to help leadership and boards track performance, understand variances, and support informed decision-making.

Our Role Going Forward

In 2026, we will continue to serve as a trusted partner to management and the board by:
  • Delivering timely, accurate financial information
  • Communicating clearly around deadlines, risks, and emerging requirements
  • Supporting leadership with the tools and insights needed for informed governance

A Thought for the New Year

If your board is planning strategic initiatives, anticipating funding or staffing changes, or simply reviewing financial policies for the coming year, an early conversation can be helpful. We are always available to support thoughtful planning and strong governance.
Thank you for your service and for your commitment to financial stewardship. We look forward to supporting you in 2026.