Non-Profit
Multi-Year Grant (Present Value Discount)
Recording a long-term pledge and adjusting for the time value of money (PV).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Pledges Receivable (Gross) | Asset (+) | 30,000.00 | - |
| Discount on Pledges Receivable | Contra-Asset (+) | - | 2,000.00 |
| Contribution Revenue (Restricted) | Revenue (+) | - | 28,000.00 |
💡 Accountant's Note
If a donor promises $10k/year for 3 years, the money arriving in Year 3 is worth less today. You must record the receivable net of the discount to follow GAAP/IFRS.
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