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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
How to Create an Allowance for Uncollectible Donor Pledges
Estimating and provisioning for the portion of promised donations that will likely not be fulfilled.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
How to Record a Contribution to a Multi-Donor Pooled Fund
Receiving a contribution into a pooled fund managed on behalf of multiple donors.
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.
How to Record Direct Program Supply Purchases for Beneficiary Distribution
Expensing educational materials, food kits, or medical supplies purchased for direct distribution to beneficiaries.
How to Record Direct Cash Transfers Disbursed to Qualifying Beneficiaries
Expensing cash grants distributed directly to qualifying beneficiaries as a direct program cost.
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.
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.
How to Record Fuel and Maintenance Costs for Program Vehicles
Expensing fuel and routine maintenance for vehicles used exclusively or primarily for program activities.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
How to Record Interest Income Earned on Endowment Fixed-Income Investments
Recognizing interest earned on bonds or fixed deposits held within the endowment portfolio.
How to Record Dividend Income Received on Endowment Portfolio Equity Holdings
Recording dividends paid on stocks held within the endowment investment portfolio.
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.
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.
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.
How to Establish a Board-Designated Quasi-Endowment from Unrestricted Reserves
Recording the board's designation of unrestricted reserves as a quasi-endowment fund.
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.
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.
How to Record Monthly Depreciation on Office and Program Fixed Assets
Recording monthly depreciation across all fixed assets used by the NGO.
How to Record Subsequent Depreciation for a Donated Fixed Asset
Depreciating a vehicle that was donated and recorded at fair value.
How to Capitalize Leasehold Improvements for an NGO Program Office
Capitalizing fit-out costs for a rented program office.
How to Record a Construction Draw and Release Capital Campaign Restrictions
Using restricted capital campaign funds to pay a construction contractor.
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.
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.
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.
How to Release Net Assets from a Time-Based Donor Restriction
Releasing a time-restricted donation when the specified time period has arrived.
How to Record a Prior Year Net Asset Misclassification Correction
Correcting an error where a restricted grant was incorrectly recorded as unrestricted.
How to Record Foreign Currency Translation Adjustments for a Field Office
Translating a field office's monthly activity from USD to JOD for consolidation.
How to Record a Bank Reconciliation Adjustment for Interest Earned
Adjusting the general ledger for interest income appearing on the bank statement.
How to Accrue a Provision for Outstanding NGO Grant Commitments
Accruing the estimated future expenditure committed under active grant agreements.
How to Accrue the Annual Statutory Audit Fee at Year-End
Accruing the auditor's fee at year-end before the invoice is received.
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.
How to Record the Payment of an Accrued Statutory Audit Fee
Paying the external auditor's invoice for the annual financial statement audit.
How to Record Legal and Compliance Expenses for NGO Operations
Paying a lawyer for reviewing grant agreements and employment contracts.
How to Record the Payment of Unrelated Business Income Tax (UBIT)
Paying the Unrelated Business Income Tax accrued in a prior period.
How to Record Withholding Tax Deducted from Foreign Grant Receipts
Recording withholding tax deducted by a foreign donor before disbursing a grant.
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.
How to Record the Annual Filing Fee to an NGO Regulatory Authority
Paying the annual reporting and filing fee to the NGO regulatory authority.
How to Record Advance Ticket Sales for a Fundraising Gala as Deferred Revenue
Recording advance ticket sales for an annual fundraising gala.
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.
How to Record Net Proceeds and Fees from an Online Crowdfunding Campaign
Recording net proceeds from a GoFundMe or LaunchGood crowdfunding campaign.
How to Record Peer-to-Peer Fundraising Payouts as Contribution Revenue
Receiving funds raised by individual volunteer fundraisers on behalf of the NGO.
How to Record Donor Stewardship and Recognition Expenses
Recording costs of donor recognition events, impact reports, and thank-you gifts.
How to Record Ticket Refunds Due to a Fundraising Gala Cancellation
Refunding ticket holders when an event is cancelled.
How to Record Corporate Sponsorship Revenue as an Exchange Transaction
Recording a corporate sponsor's payment for naming rights or event sponsorship.
How to Record Ticket Sales and Prize Expenses for a Charity Raffle
Recording ticket sales from a charity raffle event.
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