Learn how to accurately record contributions and pledges to avoid errors in revenue recording and misclassification of net assets.
Many nonprofit leaders have difficulty recording contributions and pledges. Oftentimes this results in errors in recording revenue or breaking out net assets classifications. This presentation will help the people responsible for reviewing contribution agreements to recognize conditions and restrictions. The live webinar also explains the differences in recording unconditional and conditional contributions vs donor-restricted and unrestricted contributions. Failing to recognize the differences between these various types of contributions and impacts on revenue recognition can have a significant impact on the financials and is a frequent cause of audit adjustments. This webinar is critical for nonprofit leaders and those involved in reviewing and processing donor agreements and cash receipts.
Learning Objectives
- You will be able to describe the difference between a condition and a restriction.
- You will be able to discuss how to record various types of contributions/pledges.
- You will be able to explain how a contribution is different from an exchange transaction.
- You will be able to recognize when revenue should be recorded.
Agenda
What Is a Contribution and a Pledge?
- Contribution vs Exchange Transaction
- Examples of Contributions and Exchange Transactions
- Promise vs Intent
Types of Pledges?
- Unconditional Promise to Give.
- Conditional Promise to Give.
- Examples of Unconditional and Conditional Promises to Give
Restricted vs Unrestricted?
- Contributions/Pledges With Donor Restrictions
- Contributions/Pledges Without Donor Restrictions
- Examples of Contributions/Pledges With and Without Donor Restrictions
Restriction or Condition?
- Differences Between Restrictions and Conditions
- Examples of Restrictions vs Conditions
Review and Questions
- Contributions vs Exchanges Transactions
- Unconditional vs Conditional Contributions
- Restricted vs Unrestricted
- Restriction or Condition
- Questions
Speakers
Eric Hittle, CPA,
Aronson LLC- Senior associate, assurances services at Aronson LLC
- Six years of experience in public accounting
- Specializes in nonprofit accounting
- Member of AICPA
- M.A. degree in professional accountancy, Montana State University, Bozeman
- Can be contacted at 240-364-2721 or ehittle@aronsonllc.com
Who Should Attend
This live webinar is designed for accountants, CPAs, executive directors, officers, board members, controllers, CFOs, tax managers, and bookkeepers.
