Non-Profit Knowledge Center
Explore our verified library of Non-Profit transactions. Every entry is reviewed for IFRS compliance and real-world accuracy by our technical accounting team.
Recording Expenses Against Restricted Grant
Matching project expenses to the restricted funding received from a donor (Matching Principle in NGOs).
Unrestricted Cash Donation
Recording a cash contribution received for general operating purposes (without donor restrictions).
Donation Restricted for Specific Project
Recording cash received that is legally restricted by the donor for a specific program or purpose.
Unconditional Promise to Give (Pledge)
Recording a written promise from a donor to contribute cash in the future.
Release of Net Assets from Restriction
Moving funds from restricted to unrestricted once the project conditions have been satisfied.
In-Kind Donation of Goods (Gifts-in-Kind)
Recording non-cash donations such as food, clothing, or equipment.
Contributed Specialized Services
Recording professional services (e.g., Legal or IT) provided for free by a professional.
Conditional Grant (Refundable Advance)
Recording a grant that has a 'barrier' or condition that must be met before revenue can be recognized.
Allocating Salaries to Program Services
Dividing staff costs between direct mission work and administrative overhead.
Establishing a Permanent Endowment
Recording a gift where the principal must be kept intact forever.
Allowance for Uncollectible Pledges
Estimating the portion of promised donations that will likely not be fulfilled.
Fundraising Event Revenue & Expense
Recording gross ticket sales for a gala and the direct costs associated with the event.
Board-Designated Reserve Fund
Internally restricting unrestricted cash for a future capital project.
Agency Transaction (Pass-Through)
Recording funds received where the NGO acts as an agent/intermediary for another specified beneficiary.
Membership Dues (Exchange vs. Contribution)
Splitting membership fees between the value of services provided and the purely charitable portion.
Unrelated Business Income Tax (UBIT)
Accruing tax for income generated from activities not substantially related to the NGO's exempt purpose.
Endowment Investment Fair Value Adjustment
Adjusting the value of stocks/bonds held in an endowment fund at fiscal year-end.
Joint Costs: Program vs. Fundraising
Allocating costs for a direct mail campaign that includes both an educational message and a solicitation.
Charitable Gift Annuity (Initial Recognition)
Recording a donor's gift where the NGO must pay the donor a fixed income for life.
Capital Campaign (Building Fund)
Recording donations specifically restricted by the donor for the construction of a new facility.
Expiration of a Term Endowment
Releasing funds from restriction because a specific timeframe (e.g., 20 years) has passed.
Donated Use of Facilities (Free Rent)
Recording the fair market value of office space provided to the NGO for free by a landlord.
Charity Care (NGO Healthcare)
Recording medical services provided to a patient who has no ability to pay.
Tuition Discount (Scholarship/Fellowship)
Recording a scholarship granted to a student in an NGO-run school or university.
Grant Sub-award to Local Partner
Recording the transfer of grant funds to a smaller NGO (sub-recipient) to execute a project.
Purchase of Museum Collection Item
Recording the acquisition of a piece of art or a historical artifact (if the NGO capitalizes its collection).
Foreign Field Office Remittance (INGOs)
Sending funds from the home office to a foreign field office in a different currency.
Inter-fund Transfer (General to Scholarship)
Internally moving cash between two different funds within the same legal entity.
Museum Deaccessioning (Sale of Art)
Recording the sale of a collection item where proceeds are legally restricted for new acquisitions.
Donor-Advised Fund (DAF) Contribution
Recording a contribution where the donor retains 'advisory privileges' over distributions.
Donated Life Insurance Policy
Recording the change in ownership of a life insurance policy given to the NGO.
Government Cost-Reimbursement Billing
Recognizing revenue after spending money on a government-funded project that pays on a reimbursement basis.
Beneficial Interest in Perpetual Trust
Recording the fair value of an interest in a trust held by a third party (like a bank).
Volunteer Stipend (Non-Employee Allowance)
Recording a small daily allowance or travel stipend paid to a volunteer (not a salary).
Release of Donor Restriction Matching Depreciation
Releasing a portion of a restricted capital gift to match the annual depreciation of the purchased asset.
Multi-Year Grant (Present Value Discount)
Recording a long-term pledge and adjusting for the time value of money (PV).
Cash Donation Box Collection
Recording the cash counted from a collection box at a mosque, church, or public event.
Online Donation — Website / PayPal / Stripe
Recording a donation made through the NGO's online giving page, net of platform fee.
Recurring Monthly Donor — First Charge
Recording the first installment from a donor who has set up a monthly standing order.
Recurring Donor Cancellation — Pledge Write-Off
Writing off the remaining expected future donations when a monthly donor cancels their commitment.
Corporate Matching Gift Received
Recording an employer matching donation triggered by an employee's personal gift.
Donation Refund to Donor
Returning a donation to a donor because the restricted project was cancelled.
In-Kind Donation — Vehicle
Recording a car donated by a supporter for program use.
In-Kind Donation — Real Estate / Land
Recording land donated by a benefactor for the NGO's permanent offices.
Stock / Securities Donated (Fair Value)
Recording publicly traded shares donated by a supporter.
Donated Securities Sold After Receipt
Selling donated shares on the same day or shortly after receipt.
Cryptocurrency Donation Received
Recording Bitcoin or other crypto received as a donation, valued at fair market value at receipt.
Bequest Received from Estate
Recording a cash legacy received following the death of a donor.
Government Grant Received Upfront (Full Amount)
Receiving a full-year government grant in a single disbursement at the start of the grant period.
Grant Milestone Billing — Invoice to Donor
Raising an invoice to a grant-making organization when a project milestone is achieved.
Grant Indirect Cost Recovery (Overhead)
Recovering an agreed percentage of direct costs as indirect cost overhead from a grant.
Grant Close-Out — Unused Funds Returned
Returning the unspent balance of a grant to the donor at project close.
Grant Audit Finding — Disallowed Cost
Recording the repayment of a grant amount disallowed by the donor's auditor.
Cost-Share / Matching Contribution (NGO's Own Funds)
Recording the NGO's own matching contribution required as a condition of a donor grant.
Multi-Donor Pooled Fund Contribution
Receiving a contribution into a pooled fund managed on behalf of multiple donors.
Grant Receivable Written Off (Non-Payment)
Writing off a grant receivable when the grantor fails to honour a committed grant.
Direct Program Expense — Supplies
Purchasing educational materials, food kits, or medical supplies for direct program use.
Beneficiary Cash Transfer (Direct Aid)
Distributing cash grants directly to qualifying beneficiaries.
Beneficiary Voucher / In-Kind Distribution
Issuing food vouchers or commodity packages to beneficiaries.
Staff Field Mission Costs
Paying for travel, accommodation, and per diem for staff on a field assessment mission.
Program Vehicle Fuel & Maintenance
Recording fuel and routine maintenance for vehicles used exclusively for program activities.
Training & Capacity Building Program Cost
Paying for a workshop, trainer fees, and materials for a beneficiary capacity building program.
Program Equipment Purchased (Grant-Funded)
Buying laptops, medical equipment, or solar panels for a specific program.
Program Equipment — Monthly Depreciation
Monthly depreciation charge on equipment used for program delivery.
Monitoring & Evaluation (M&E) Expense
Paying for independent monitoring visits, data collection, and program evaluation.
Project-Specific Audit Expense
Paying for a donor-required financial audit of a specific project.
Monthly Staff Payroll (Gross)
Recording the gross salary expense for all NGO staff — program, admin, and fundraising.
EOSB Monthly Provision — NGO Staff (Jordan)
Accruing the end-of-service gratuity for Jordanian NGO employees.
SSC Employer Contribution — NGO Staff (Jordan)
Recording the employer's 14.25% Social Security contribution for all Jordanian staff.
Expat Staff Housing Allowance
Paying the monthly housing allowance for an international staff member stationed in Jordan.
Volunteer Meal & Transport Reimbursement
Reimbursing volunteers for meal and transportation costs incurred while supporting program activities.
Consultancy Contract Payment
Paying an external consultant for technical expertise on a specific project.
Staff Redundancy / Severance Payment
Recording a one-time payment to an employee whose position was eliminated due to grant funding ending.
Endowment Investment Purchase
Investing endowment funds in a diversified portfolio of stocks and bonds.
Endowment Investment Sale (Rebalancing)
Selling a portion of the endowment portfolio to rebalance asset allocation.
Endowment Interest Income Earned
Recording interest earned on endowment fixed-income investments.
Endowment Dividend Income
Recording dividends received on stocks held in the endowment portfolio.
Endowment Realized Gain on Investment Sale
Recording a capital gain when endowment stocks are sold above their original cost.
Endowment Realized Loss on Investment Sale
Recording a loss when an endowment investment is sold below its carrying value.
Endowment Annual Spending Distribution to Operations
Transferring the board-approved annual spending amount from the endowment to the operating fund.
Quasi-Endowment Established by Board
The board votes to invest a portion of unrestricted reserves as a board-designated quasi-endowment.
Annuity Payment to Donor (Split-Interest)
Making the periodic annuity payment to a donor who established a Charitable Gift Annuity.
Purchase of Office Equipment
Buying computers, printers, and office furniture for the NGO's headquarters.
Monthly Depreciation — Office & Program Assets
Recording monthly depreciation across all fixed assets used by the NGO.
Donated Asset — Subsequent Depreciation
Depreciating a vehicle that was donated and recorded at fair value.
Leasehold Improvement — Program Office
Capitalizing fit-out costs for a rented program office.
Capital Campaign Expenditure — Construction Draw
Using restricted capital campaign funds to pay a construction contractor.
Asset Write-Off — Fully Depreciated
Removing a fully depreciated computer or printer that is no longer in use.
Grant-Funded Asset — Deferred Income (IAS 20)
Recording a government grant received to buy program equipment as deferred income.
Month-End Net Asset Reconciliation
Verifying that the three net asset classes (Unrestricted, Temporarily Restricted, Permanently Restricted) balance.
Time-Based Restriction Release
Releasing a time-restricted donation when the specified time period has arrived.
Correction of Prior Year Misclassification
Correcting an error where a restricted grant was incorrectly recorded as unrestricted.
Foreign Currency Translation — Field Office
Translating a field office's monthly activity from USD to JOD for consolidation.
Bank Reconciliation Adjustment — Interest Earned
Adjusting the general ledger for interest income appearing on the bank statement.
Provision for Outstanding Grant Commitments
Accruing the estimated future expenditure committed under active grant agreements.
Accrued Annual Audit Fee
Accruing the auditor's fee at year-end before the invoice is received.
Annual NGO Registration / License Renewal
Paying the annual renewal fee to the Ministry of Social Development or relevant authority.
Statutory Audit Fee Payment
Paying the external auditor's invoice for the annual financial statement audit.
Legal & Compliance Expense
Paying a lawyer for reviewing grant agreements and employment contracts.
UBIT Tax Actual Payment
Paying the Unrelated Business Income Tax accrued in a prior period.
Withholding Tax on Foreign Grant Receipts
Recording withholding tax deducted by a foreign donor before disbursing a grant.
Purchase — VAT Exempt Status (No Reclaim)
Recording a purchase where the NGO cannot reclaim VAT due to its exempt status.
Annual Filing Fee — Ministry / Regulator
Paying the annual reporting and filing fee to the NGO regulatory authority.
Fundraising Gala — Ticket Sales Collected
Recording advance ticket sales for an annual fundraising gala.
Fundraising Gala — Event Night Revenue Recognition
Recognizing ticket revenue and recording event costs on the night of the gala.
Online Crowdfunding Campaign Proceeds
Recording net proceeds from a GoFundMe or LaunchGood crowdfunding campaign.
Peer-to-Peer Fundraising Payout
Receiving funds raised by individual volunteer fundraisers on behalf of the NGO.
Donor Stewardship Expense
Recording costs of donor recognition events, impact reports, and thank-you gifts.
Gala Cancellation — Refund to Ticket Holders
Refunding ticket holders when an event is cancelled.
Corporate Sponsorship Revenue
Recording a corporate sponsor's payment for naming rights or event sponsorship.
Fundraising Raffle / Lottery Proceeds
Recording ticket sales from a charity raffle event.
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