Another couple of nonprofit questions


B

Bill

All equipment purchases in a new church were coded to expense
codes...this was done in quicken so the years were not closed, now
before I close these years in quickbooks, how detailed do I need to be
with schedules other than the item, date purchased, and amount? Can I
take depreciation on an earlier year or adjust a later years amount?

Other issue: One member painted a classroom of a new building as a
donation...should that be capitalized or expensed? What's the term on
painting a room?

Thanks!!
 
Ad

Advertisements

K

Ken Russell

I suggest that your schedule should also include a depreciation rate based
on the useful life of the item.

Painting would be an expense under Repairs & Maintenance.

Ken Russell

| All equipment purchases in a new church were coded to expense
| codes...this was done in quicken so the years were not closed, now
| before I close these years in quickbooks, how detailed do I need to be
| with schedules other than the item, date purchased, and amount? Can I
| take depreciation on an earlier year or adjust a later years amount?
|
| Other issue: One member painted a classroom of a new building as a
| donation...should that be capitalized or expensed? What's the term on
| painting a room?
|
| Thanks!!
 
B

Bill

Yes, the term would be useful. In my rush I didn't include that.

Thanks
 
P

Peter Saxton

I suggest that your schedule should also include a depreciation rate based
on the useful life of the item.

Painting would be an expense under Repairs & Maintenance.

Ken Russell

| All equipment purchases in a new church were coded to expense
| codes...this was done in quicken so the years were not closed, now
| before I close these years in quickbooks, how detailed do I need to be
| with schedules other than the item, date purchased, and amount? Can I
| take depreciation on an earlier year or adjust a later years amount?
|
| Other issue: One member painted a classroom of a new building as a
| donation...should that be capitalized or expensed? What's the term on
| painting a room?
|
| Thanks!!
Because the building is new I would capitalise it.
 
C

Chris Luper

| Other issue: One member painted a classroom of a new building as a
Because the building is new I would capitalise it.


--=20
Pete
I would tend to agree. And the term on that would be the same as the building.
 
A

Ab

You will need to do a schedule of functional expenses and for that you
will need to allocate your expenses among the areas of Program,
fund-raising and general administrative. Maybe that is obvious, maybe
it is not.

Ab
 
Ad

Advertisements

E

EFranklin

You should purchase a copy of FAS 116. Below is an summary excerpt for
non-cash contributions. It appears that the paint job should not be
recorded.

FAS 116 on Contributions Made and Received

* Noncash contributions, such as buildings and equipment, and
contributed services, such as the time of volunteers, should be
recorded, but the criteria for recognition, particularly contributed
services, is much more restrictive. Noncash contributions that do not
meet the criteria cannot be recorded. Basically, a volunteer's time can
only be recorded if the time is spent building an asset for the
nonprofit or the volunteer possesses a professional skill such as an
attorney or CPA, and the nonprofit would have paid for the service had
the service not been donated.
 
A

Ab

I agree and I highly recommend getting a book on non-profit accounting
and/or taking a class in your local community college on it. There
are many details that you don't know yet and cannot ask questions
about. To be in the safe side, get more knowledgeable about this
area. PPC has excellent publications on the subject that are user
friendly with lists for checkmarks, etc. Go to
http://www.ppcnet.com/ppcnet/
 
Ad

Advertisements

W

Wolfgang Rochow

Your question has been answered as far as the question goes. However,
depending upon where you reside, what is the legitimacy of the donation?

In Canada, where I reside, you can't provide a tax deductible donation
receipt for services rendered (which the effort of painting is). However,
you can trade cheques/checks i.e. your member issues you an invoice for
painting services rendered (which you use as evidence for your expense); the
church then pays the invoice to the member; finally, the member makes a
cash/cheque donation to the church. The Canadian rule is based on the rule
that you your donation must be something tangible that is yours to give
(time being an intangible). In this regard the same methods must be employed
when other services are obtained on a donor basis e.g. legal, accounting,
medical, etc.

In Canada it's not necessarily what you do but also how you do it. So how
does you impact in your neck of the woods.

Talking about closing the books before you can move on (and being unable to
reopen them after you have moved on) isn't this a pain? If you hate that as
much as I do, you can always create your own applications using STEP FORWARD
look for it at www.gestalt.com

STEP FORWARD has been used for a number of not-for-profit custom
applications.

Wolfgang Rochow, CGA
Calgary, AB, Canada
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top