Non-Profit
Charitable Gift Annuity (Initial Recognition)
Recording a donor's gift where the NGO must pay the donor a fixed income for life.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Assets | Asset (+) | 50,000.00 | - |
| Annuity Payment Liability | Liability (+) | - | 30,000.00 |
| Contribution Revenue (Restricted) | Revenue (+) | - | 20,000.00 |
💡 Accountant's Note
The NGO receives $50k. However, the Present Value of what they must pay back to the donor over their lifetime is $30k. Only the remaining $20k is a donation today.
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