Nonprofit Accounting Basics


Accounting for Government Grants: Sample Journal Entries

Following are some examples of journal entries for accounting for government grants.

Proper Accounting for Contributions:

Allowable Costs

The specific items that can be charged to, and therefore reimbursed from, any grant are based on the specifics of each grant agreement.

Budget for Government Grants

When you receive a grant from a governmental agency, it will typically include a program budget.

Exchange Transactions

Factors that may indicate an exchange transaction:

Often it is difficult to distinguish between a contribution and an exchange transaction, the following factors are indicative of an exchan

Government Grants

Government grants are a common method for non-for-profit (NFP) organizations to obtain funding.

Government Grants: Other Items to Consider

Many government grants also contain specific requirements the recipient must follow in order to fully comply with the grant.

Is There an Ideal Indirect Rate?

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.

Revenue Recognition

If you determine that your government grants are contributions, then you should follow the guidance in FASB116.

Sample Journal Entries for Government Grants

The following are the entries necessary for cost-reimbursable government grant (assuming the grant is determined to be an exchange transaction):

Types of Grants

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