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

November 10, 2015August 15, 2011 by

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.}