Learn how to treat Donations made to a non-profit making organizations

August 15th, 2011 Comments off
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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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Financial Accounting

 
 

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