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Bad Debt

By CarolCarrie / September 23, 2019 /
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In our last two ports of call on our Chart of Accounts Grand Tour, we visited Accounts and Pledges Receivable and also looked at Accounts Receivable Aging and Due Dates. Today we visit a related topic, bad debt, and take a look at the bad debts entry you need to make in your books. We find…

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Nonprofit Income Accounts Part 3: In-Kind Donations

By CarolCarrie / September 24, 2018 /
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In the last few posts we have been talking about contribution income and the kinds of income accounts you need. Our Chart of Accounts Grand Tour travels through in-kind donation income accounts today. In-kind donations are one of the more confusing and difficult areas for nonprofits. And that’s unfortunate because in-kind donations are so common.…

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Contributions Under the New Tax Law

By CarolCarrie / September 17, 2018 /
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How will the new tax law affect charitable giving? Are there any tax breaks left for donors? Our friends and income tax experts, Lou Lauteria and Greg King at Lauteria & King, PLC, sent out a client alert to explain. We reprint their explanation below, which includes a great idea for your donors, then add…

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Nonprofit Income Accounts Part 2: Contributions

By CarolCarrie / September 10, 2018 /
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In our last post we took a brief look at the nature of contributions, and all the many names that contributions go by. We distinguished contributions from exchange income. Today we look at accounts for contributions of cash. In-kind contributions, such as gifts of securities or other in-kind goods, services or rents, are for another…

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Names for Contributions

By CarolCarrie / August 27, 2018 /
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A gift by any other name would smell as sweet… Last week our Chart of Accounts Grand Tour began to explore income accounts. We covered federated campaigns and membership contributions. Before we continue with income accounts for general contributions, let’s talk terminology. Defining a Contribution Contribution income goes by many names: Donation Contribution Membership Gift…

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A Problem with Restricted Gifts

By CarolCarrie / April 30, 2018 /
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Recently a client asked us for help keeping track of restricted gifts. This organization has a program where they raise money for other charitable organizations in the community. The client said people are making contributions restricted for specific organizations and even for specific purposes. For example, they received a gift from one donor for a…

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Year End Gift Cutoff

By CarolCarrie / December 11, 2017 /
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December is a busy month for most nonprofits. Various sources place the percentage of annual gifts made in December at more or less 30%. But which gifts count for December? Regardless of your organization’s fiscal year, all organizations must deal with the year end gift cutoff of December 31 for tax purposes. The IRS requires…

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How to Value and Record Volunteer Services

By CarolCarrie / September 4, 2017 /
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We often receive the question, “How do I record volunteer services?” From our last post, Why Record Volunteer Services?, you know some volunteer services must be recorded as defined in Generally Accepted Accounting Principles (GAAP). Other volunteer services, while valuable to the organization, do not meet GAAP criteria for recording. However, you still may wish…

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Why Record Volunteer Services?

By CarolCarrie / August 28, 2017 /
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Often we find nonprofits do not record the value of volunteer services. After all, volunteer services, also referred to as in-kind services, don’t have a direct impact on cash. And there is so much other work to do; it seems like a waste of time. Why would you want to record volunteer services anyway? 1.…

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