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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.

Non-Profit

How to Record Project Expenses Against a Restricted Donor Grant and Release Revenue

Matching project expenses to restricted donor funding, simultaneously earning the grant revenue as spending occurs.

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Non-Profit

How to Record an Unrestricted Cash Donation for General Operating Purposes

Recording a cash contribution received without donor restrictions, available for any board-approved use.

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Non-Profit

How to Record a Donation Restricted by the Donor for a Specific Project

Recording cash received with donor-imposed restrictions for a specific program, tracked separately from unrestricted funds.

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Non-Profit

How to Record an Unconditional Donor Pledge as a Receivable and Revenue

Recording a written, unconditional promise from a donor to contribute cash in the future.

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Non-Profit

How to Release Net Assets from Donor Restriction When Project Conditions Are Met

Reclassifying net assets from restricted to unrestricted once the donor's specified project conditions have been satisfied.

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Non-Profit

How to Record an In-Kind Donation of Goods at Fair Market Value

Recording non-cash donations of food, clothing, equipment, or supplies at their fair market value.

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Non-Profit

How to Record Donated Professional Services as In-Kind Contribution Revenue

Recording professional services such as legal, IT, or medical care provided for free by a qualified professional.

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Non-Profit

How to Record a Conditional Grant Advance as a Refundable Liability Until Conditions Are Met

Recording a grant received with a performance barrier — treated as a liability until the condition is satisfied.

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Non-Profit

How to Allocate Staff Salaries Across Program Services and Management and General Expense

Dividing staff costs between direct mission work (program) and administrative overhead (management and general) based on time allocation.

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Non-Profit

How to Record the Establishment of a Permanent Endowment Fund

Recording a gift where the principal must be maintained in perpetuity, with only investment income available for spending.

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Non-Profit

How to Create an Allowance for Uncollectible Donor Pledges

Estimating and provisioning for the portion of promised donations that will likely not be fulfilled.

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Non-Profit

How to Record Gross Revenue and Direct Costs for a Fundraising Gala or Special Event

Recording gross ticket revenue and direct costs of a fundraising gala to show net fundraising efficiency.

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Non-Profit

How to Record a Board-Designated Reserve Fund from Unrestricted Net Assets

Internally restricting unrestricted cash for a future capital project through a board resolution.

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Non-Profit

How to Record an Agency or Pass-Through Transaction Where the NGO Is an Intermediary

Recording funds received where the NGO acts as an agent for a named beneficiary — no revenue is recognized.

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Non-Profit

How to Split Membership Dues Between Exchange Revenue and Charitable Contribution

Separating membership fees into the fair value of services received (exchange) and the purely charitable portion (contribution).

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Non-Profit

How to Accrue Unrelated Business Income Tax on Non-Exempt Commercial Activities

Accruing corporate income tax on revenue from activities unrelated to the NGO's exempt purpose.

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Non-Profit

How to Record an Unrealized Gain on Endowment Investments at Year-End

Adjusting endowment investments to fair value at fiscal year-end, with the gain remaining within the restricted endowment.

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Non-Profit

How to Allocate Joint Costs Between Program and Fundraising for a Direct Mail Campaign

Splitting the cost of a direct mail piece that includes both an educational program message and a donation solicitation.

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Non-Profit

How to Record the Initial Recognition of a Charitable Gift Annuity

Recording a donor gift where the NGO must pay the donor fixed income for life, splitting it between a liability and a contribution.

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Non-Profit

How to Record Donations Restricted by Donors for a Capital Campaign Building Fund

Recording donations received during a capital campaign that are restricted by donors for the construction of a specific facility.

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Non-Profit

How to Release a Term Endowment from Restriction When the Time Period Expires

Reclassifying a term endowment from restricted to unrestricted when the specified time period has elapsed.

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Non-Profit

How to Record Donated Use of Facilities as In-Kind Revenue and Rent Expense

Recording the fair market value of office space provided to the NGO for free by a landlord.

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Non-Profit

How to Record Charity Care Provided to Uninsured Patients in a Non-Profit Hospital

Recording medical services provided to a patient who cannot pay as a direct reduction of gross revenue.

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Non-Profit

How to Record a Scholarship or Tuition Discount as a Contra-Revenue Allowance

Recording a scholarship granted to a student in an NGO-run school, reducing gross tuition revenue to net revenue.

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Non-Profit

How to Record a Sub-Grant Award to a Local Partner NGO

Recording the transfer of institutional grant funds to a smaller local NGO (sub-recipient) to execute a component of the project.

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Non-Profit

How to Record the Purchase of a Museum Collection Item as a Heritage Asset

Recording the acquisition of an art piece or historical artifact when the NGO capitalizes its collection.

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Non-Profit

How to Record a Fund Remittance from Headquarters to a Foreign Field Office

Sending operating funds from the home office to a foreign field office in a different currency, recording the intercompany receivable.

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Non-Profit

How to Record an Interfund Transfer Between the General Fund and a Scholarship Fund

Moving cash internally between two different funds within the same legal entity.

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Non-Profit

How to Record a Museum Deaccession Sale and Restrict the Proceeds for New Acquisitions

Recording the sale of a collection item where proceeds must legally be restricted for new acquisitions only.

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Non-Profit

How to Record a Contribution Received from a Donor-Advised Fund

Recording a grant from a DAF where the donor retains advisory privileges over distributions.

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Non-Profit

How to Record a Donated Life Insurance Policy as an Asset at Cash Surrender Value

Recording the transfer of a life insurance policy ownership to the NGO at its cash surrender value.

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Non-Profit

How to Bill and Record Revenue for a Government Cost-Reimbursement Grant

Recognizing grant revenue and a receivable after spending on a government-funded project that reimburses on a cost basis.

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Non-Profit

How to Record a Beneficial Interest in a Perpetual Trust Held by a Third Party

Recording the fair value of an interest in a perpetual trust administered by a bank where the NGO is the sole beneficiary.

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Non-Profit

How to Record a Volunteer Stipend or Daily Allowance Payment

Recording a small daily allowance or travel stipend paid to a volunteer as a program expense.

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Non-Profit

How to Release a Donor Restriction Annually to Match Depreciation on a Grant-Funded Asset

Releasing a portion of the restricted capital gift each year to offset the depreciation expense on the purchased asset.

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Non-Profit

How to Record a Multi-Year Pledge with a Present Value Discount

Recording a long-term donor pledge and adjusting for the time value of money using present value discounting.

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Non-Profit

How to Record Cash Collected from a Donation Box at a Mosque, Church, or Public Event

Recording anonymous cash collected from a donation box after it is counted and verified by two authorized signatories.

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Non-Profit

How to Record an Online Donation Received via PayPal or Stripe Net of Platform Fees

Recording a website donation at gross amount with the payment platform fee as a separate fundraising expense.

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Non-Profit

How to Record the First Monthly Charge from a Recurring Donor Standing Order

Recognizing the first installment from a monthly recurring donor — no pledge receivable is created until each payment succeeds.

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Non-Profit

How to Write Off a Recurring Pledge Receivable When a Monthly Donor Cancels

Writing off the remaining future pledge amounts when a recurring monthly donor cancels their commitment.

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Non-Profit

How to Record a Corporate Matching Gift Received from an Employer

Recording a corporate employer's matching donation triggered by an employee's personal gift to the NGO.

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Non-Profit

How to Record a Donation Refund to a Donor When a Restricted Project Is Cancelled

Returning a previously received restricted donation when the specified project cannot proceed.

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Non-Profit

How to Record an In-Kind Vehicle Donation at Fair Market Value as a Fixed Asset

Recording a donated vehicle at its fair market value on the donation date and setting up depreciation.

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Non-Profit

How to Record a Donated Land or Real Estate Property at Appraised Fair Value

Recording land donated for the NGO's permanent use at an independently appraised value.

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Non-Profit

How to Record Donated Publicly Traded Securities at Fair Market Value on Gift Date

Recording shares donated by a supporter at their closing market price on the date of transfer.

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Non-Profit

How to Record the Sale of Donated Securities Shortly After Receipt

Selling donated shares on the same day or shortly after receipt and recognizing a small gain or loss.

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Non-Profit

How to Record a Cryptocurrency Donation at Fair Market Value on the Date of Receipt

Recording Bitcoin or other digital asset donations at their fair market value on the donation date.

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Non-Profit

How to Recognize Bequest Revenue When Cash Is Received from a Donor's Estate

Recording a cash legacy received after the donor's death when probate is sufficiently complete and collection is virtually certain.

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Non-Profit

How to Record an Upfront Government Grant as Deferred Revenue Until Conditions Are Met

Receiving a full-year government grant disbursed upfront, deferred as a liability until qualifying expenditure occurs.

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Non-Profit

How to Bill a Grant Donor and Recognize Revenue When a Project Milestone Is Achieved

Raising an invoice and recognizing revenue when a project milestone is verified and reported to the grant-making organization.

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Non-Profit

How to Record Indirect Cost Recovery Revenue from a Donor Grant

Recognizing an agreed overhead recovery percentage on direct project costs as a separate revenue line.

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Non-Profit

How to Return Unused Grant Funds to the Donor at Project Close-Out

Clearing the deferred grant revenue liability and refunding unspent funds to the grantor at project end.

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Non-Profit

How to Record a Grant Audit Finding and Repayment of a Disallowed Cost

Recording the repayment of a grant amount disallowed by the donor's auditor as a current-period expense.

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Non-Profit

How to Record the NGO's Own Cost-Share Matching Contribution Required by a Donor Grant

Recording both the expense and corresponding revenue for the NGO's mandatory matching contribution to satisfy grant conditions.

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Non-Profit

How to Record a Contribution to a Multi-Donor Pooled Fund

Receiving a contribution into a pooled fund managed on behalf of multiple donors.

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Non-Profit

How to Write Off a Grant Receivable When the Grantor Fails to Pay

Writing off a previously recognized grant receivable when the grantor defaults on a committed grant.

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Non-Profit

How to Record Direct Program Supply Purchases for Beneficiary Distribution

Expensing educational materials, food kits, or medical supplies purchased for direct distribution to beneficiaries.

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Non-Profit

How to Record Direct Cash Transfers Disbursed to Qualifying Beneficiaries

Expensing cash grants distributed directly to qualifying beneficiaries as a direct program cost.

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Non-Profit

How to Record Beneficiary Voucher Issuance and In-Kind Distribution to Program Recipients

Recording the issuance of food vouchers or commodity packages to beneficiaries, with the liability cleared on redemption.

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Non-Profit

How to Record Staff Field Mission Travel, Accommodation, and Per Diem Costs

Expensing travel, accommodation, and per diem costs for staff on a field assessment or monitoring mission.

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Non-Profit

How to Record Fuel and Maintenance Costs for Program Vehicles

Expensing fuel and routine maintenance for vehicles used exclusively or primarily for program activities.

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Non-Profit

How to Record Training and Capacity Building Program Expenses

Expensing trainer fees, venue, materials, and participant travel for a beneficiary or partner capacity building workshop.

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Non-Profit

How to Record Grant-Funded Program Equipment as a Capitalized Fixed Asset

Capitalizing laptops, medical equipment, or solar panels purchased with grant funds as fixed assets tracked separately.

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Non-Profit

How to Record Monthly Depreciation on Program Equipment as a Program Expense

Recording the monthly depreciation charge on equipment used for program delivery as a direct program cost.

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Non-Profit

How to Record Monitoring and Evaluation Costs as a Direct Program Expense

Paying for independent monitoring visits, data collection surveys, and program evaluations required by donors.

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Non-Profit

How to Record a Donor-Required Project-Specific Audit as a Program Expense

Expensing an audit mandated and funded by the donor for a specific project as a direct program cost.

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Non-Profit

How to Record Monthly NGO Staff Payroll Allocated Across Program, Management, and Fundraising

Recording gross salaries for all NGO staff with the correct functional allocation across program, management and general, and fundraising.

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Non-Profit

How to Accrue Monthly EOSB for NGO Staff in Jordan Across Functional Categories

Building the statutory end-of-service gratuity liability for Jordanian NGO staff, allocated across program and management.

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Non-Profit

How to Record the Employer SSC Contribution for NGO Staff in Jordan Across Functional Categories

Recording the employer's 14.25% Social Security contribution for all Jordanian NGO staff, allocated proportionally across program and management.

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Non-Profit

How to Record an Expat Staff Housing Allowance as a Program Staff Cost

Paying the monthly housing allowance for an international staff member stationed in Jordan.

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Non-Profit

How to Reimburse Volunteers for Meals and Transportation During Program Activities

Reimbursing volunteers for out-of-pocket meal and transport costs incurred while supporting NGO program work.

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Non-Profit

How to Record a Consultancy Contract Payment for Technical Expertise on a Program

Paying an external consultant for specific technical deliverables on a grant-funded project.

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Non-Profit

How to Record a Staff Redundancy or Severance Payment When a Grant Ends

Recording a lump-sum severance payment when a position is eliminated due to grant funding ending, drawing against the EOSB provision.

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Non-Profit

How to Record the Purchase of an Investment for the Endowment Portfolio

Investing endowment cash in a diversified portfolio of stocks and bonds per the Investment Policy Statement.

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Non-Profit

How to Record an Endowment Investment Sale for Portfolio Rebalancing

Selling a portion of the endowment portfolio to rebalance asset allocation, recognizing the realized gain.

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Non-Profit

How to Record Interest Income Earned on Endowment Fixed-Income Investments

Recognizing interest earned on bonds or fixed deposits held within the endowment portfolio.

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Non-Profit

How to Record Dividend Income Received on Endowment Portfolio Equity Holdings

Recording dividends paid on stocks held within the endowment investment portfolio.

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Non-Profit

How to Record a Realized Gain When Endowment Stocks Are Sold Above Cost

Recognizing a capital gain on the sale of endowment portfolio securities sold above their original cost.

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Non-Profit

How to Record a Realized Loss When an Endowment Investment Is Sold Below Carrying Value

Recording a capital loss when endowment securities are sold below their carrying value, reducing the endowment's net assets.

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Non-Profit

How to Record the Annual Endowment Spending Distribution Transfer to Operations

Transferring the board-approved annual spending amount from the restricted endowment fund to the unrestricted operating fund.

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Non-Profit

How to Establish a Board-Designated Quasi-Endowment from Unrestricted Reserves

Recording the board's designation of unrestricted reserves as a quasi-endowment fund.

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Non-Profit

How to Record a Periodic Annuity Payment Made to a Charitable Gift Annuity Donor

Making the contractual periodic payment to a donor who established a Charitable Gift Annuity, reducing the annuity liability.

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Non-Profit

How to Capitalize the Purchase of Office Equipment for the NGO Headquarters

Recording the purchase of computers, printers, and office furniture above the capitalization threshold as fixed assets.

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Non-Profit

How to Record Monthly Depreciation on Office and Program Fixed Assets

Recording monthly depreciation across all fixed assets used by the NGO.

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Non-Profit

How to Record Subsequent Depreciation for a Donated Fixed Asset

Depreciating a vehicle that was donated and recorded at fair value.

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Non-Profit

How to Capitalize Leasehold Improvements for an NGO Program Office

Capitalizing fit-out costs for a rented program office.

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Non-Profit

How to Record a Construction Draw and Release Capital Campaign Restrictions

Using restricted capital campaign funds to pay a construction contractor.

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Non-Profit

How to Write Off and Dispose of a Fully Depreciated Fixed Asset

Removing a fully depreciated computer or printer that is no longer in use.

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Non-Profit

How to Record a Grant-Funded Asset as Deferred Income Under IAS 20

Recording a government grant received to buy program equipment as deferred income.

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Non-Profit

How to Perform a Month-End Net Asset Reconciliation for an NGO

Verifying that the three net asset classes (Unrestricted, Temporarily Restricted, Permanently Restricted) balance.

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Non-Profit

How to Release Net Assets from a Time-Based Donor Restriction

Releasing a time-restricted donation when the specified time period has arrived.

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Non-Profit

How to Record a Prior Year Net Asset Misclassification Correction

Correcting an error where a restricted grant was incorrectly recorded as unrestricted.

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Non-Profit

How to Record Foreign Currency Translation Adjustments for a Field Office

Translating a field office's monthly activity from USD to JOD for consolidation.

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Non-Profit

How to Record a Bank Reconciliation Adjustment for Interest Earned

Adjusting the general ledger for interest income appearing on the bank statement.

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Non-Profit

How to Accrue a Provision for Outstanding NGO Grant Commitments

Accruing the estimated future expenditure committed under active grant agreements.

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Non-Profit

How to Accrue the Annual Statutory Audit Fee at Year-End

Accruing the auditor's fee at year-end before the invoice is received.

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Non-Profit

How to Record the Annual NGO Registration and License Renewal Fee

Paying the annual renewal fee to the Ministry of Social Development or relevant authority.

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Non-Profit

How to Record the Payment of an Accrued Statutory Audit Fee

Paying the external auditor's invoice for the annual financial statement audit.

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Non-Profit

How to Record Legal and Compliance Expenses for NGO Operations

Paying a lawyer for reviewing grant agreements and employment contracts.

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Non-Profit

How to Record the Payment of Unrelated Business Income Tax (UBIT)

Paying the Unrelated Business Income Tax accrued in a prior period.

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Non-Profit

How to Record Withholding Tax Deducted from Foreign Grant Receipts

Recording withholding tax deducted by a foreign donor before disbursing a grant.

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Non-Profit

How to Record a VAT-Inclusive Purchase for a Tax-Exempt NGO

Recording a purchase where the NGO cannot reclaim VAT due to its exempt status.

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Non-Profit

How to Record the Annual Filing Fee to an NGO Regulatory Authority

Paying the annual reporting and filing fee to the NGO regulatory authority.

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Non-Profit

How to Record Advance Ticket Sales for a Fundraising Gala as Deferred Revenue

Recording advance ticket sales for an annual fundraising gala.

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Non-Profit

How to Recognize Deferred Ticket Revenue and Expenses on Gala Event Night

Recognizing ticket revenue and recording event costs on the night of the gala.

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Non-Profit

How to Record Net Proceeds and Fees from an Online Crowdfunding Campaign

Recording net proceeds from a GoFundMe or LaunchGood crowdfunding campaign.

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Non-Profit

How to Record Peer-to-Peer Fundraising Payouts as Contribution Revenue

Receiving funds raised by individual volunteer fundraisers on behalf of the NGO.

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Non-Profit

How to Record Donor Stewardship and Recognition Expenses

Recording costs of donor recognition events, impact reports, and thank-you gifts.

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Non-Profit

How to Record Ticket Refunds Due to a Fundraising Gala Cancellation

Refunding ticket holders when an event is cancelled.

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Non-Profit

How to Record Corporate Sponsorship Revenue as an Exchange Transaction

Recording a corporate sponsor's payment for naming rights or event sponsorship.

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Non-Profit

How to Record Ticket Sales and Prize Expenses for a Charity Raffle

Recording ticket sales from a charity raffle event.

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