How does a nongovernmental nonprofit account for money, Ask an Expert

Accounting

How does a nongovernmental nonprofit, account for money, raised at a benefit auction that is restricted by the donors for capital improvements?

1. The balance sheet will report the donations as a part of permanently restricted net assets.

2. The statement of activities will report the donations as an increase in temporarily restricted net assets.

3. The money is reported in a separate capital projects fund.

4. Each donor will receive an itemized accounting of how the money is spent.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91790337

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