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Nonprofit Accounting Basics
Leases are a common method for organizations to obtain capital assets. Virtually any asset that can be purchased can also be leased, including vehicles, furniture and office equipment.
Generally accepted accounting principles (GAAP), in Statement of Financial Accounting Standards No.
Following are some examples of journal entries for accounting for government grants.
Proper Accounting for Contributions:
Many special events, such as dinners, galas, auctions, and walk-a-thons, are organized to raise contributions to support the organization’s activities.
Agency transactions occur when one NFP (the agent) raises contributions for another NFP (the recipient).
The specific items that can be charged to, and therefore reimbursed from, any grant are based on the specifics of each grant agreement.
This article illustrates how accounting decisions or judgments can affect taxes - on an organization or on its donors, and vice versa.
Has this ever happened to you?
When you receive a grant from a governmental agency, it will typically include a program budget.
Exempt organizations, both large and small, are relying more and more on a variety of corporate sponsorships to provide much-needed support for events and programs.
FASB116 focuses on the concept of restricted revenue.
Often it is difficult to distinguish between a contribution and an exchange transaction, the following factors are indicative of an exchan
Statement of Financial Account Standards 116 (FASB116) is the primary guidance relating to the recording of contribution revenue by not-for-profit organizations (NFPs).
Government grants are a common method for non-for-profit (NFP) organizations to obtain funding.
Many government grants also contain specific requirements the recipient must follow in order to fully comply with the grant.
To launch a capital campaign is a major decision for any nonprofit. Capital campaigns are not for all organizations. Those who decide to start one must ensure:
In this article, we will take a closer look at ways to improve communication specifically between the accounting and development departments.
Those of us who develop indirect rates wonder if there is an ideal percentage amount. It is akin to asking “what is the meaning of life”. I’ll attempt to answer the former question.
Joint Costs of Multi-purpose Activities. This is the subject of AICPA Statement of Position No. 98-2.
Pledges receivable can be a point of conflict between the accounting department and the development or fundraising team.
Raffles are gaining popularity for nonprofit fundraising. Often combined with a gala or other big event, raffles are accessible and fun.
If you determine that your government grants are contributions, then you should follow the guidance in FASB116.
Please find below a a sample amortization schedule.
The following are the entries necessary for cost-reimbursable government grant (assuming the grant is determined to be an exchange transaction):
Attachment I - SOP 98-2 - excerpts