How to Record Net Proceeds and Fees from an Online Crowdfunding Campaign
Recording net proceeds from a GoFundMe or LaunchGood crowdfunding campaign.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Bank | Asset (+) | 9,200.00 | - |
| Platform Fundraising Fee | Expense (+) | 800.00 | - |
| Contributions Revenue (Restricted — Campaign) | Revenue (+) | - | 10,000.00 |
💡 Accountant's Note
Crowdfunding platforms deduct their fees before disbursing. Gross donations are recorded as revenue and the platform fee is a fundraising expense. Revenue classification depends on whether the campaign specifies a purpose.
Practitioner & Systems Framework
💻 ERP Architecture
Never record just the net cash received. Always pull the platform's financial report, gross up the revenue to the total amount donors gave, and record the withheld amount as a fundraising fee. Classify as restricted if the campaign promised funds to a specific cause.
⚠️ Audit Flags
Netting revenue against platform fees violates GAAP/IFRS gross reporting principles. Auditors will request access to the crowdfunding platform dashboard to verify the gross numbers match the general ledger.
📄 Required Documentation
Crowdfunding platform payout report showing gross donations and fees, bank settlement statement, and the campaign's public page to verify any donor restrictions.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.