August 15th, 2011
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It is important to know how to treat donations made to a non profit making organization:
The treatment of donations and legacies , etc will depend upon the PURPOSE for which they are made.
- If the donation is intended to add to the club funds- credit to the Income and Expenditure account
- If the donation is given for a special purpose like the provision of a new club house or to coach youngsters to become better footballers, then this type of special donation should be recognized by crediting the donation to a special fund and shown in the balance sheet but NOT as part of the accumulated fund. {Note that the donation should not be used for any other purpose.}
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