[for nonprofits] How to handle donated use of facilities?


M

Mike Webb

Using QB 2003 Pro for Nonprofits
===========================
We have a conference room and a dormitory (15 rooms) that we let other orgs.
use - rarely charging anything, mostly hoping they donate something. I want
to turn that around. My thinking is that we ought to account for donated
facilities somehow in QB, but am unsure how to do so (I'm the admin
assistant, not the bookkeeper - but am trying to find a better work process
here).

I'd appreciate any input.
 
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F

Fred Marshall

Are you sure you want to do this?

Isn't there a limit on how much for-profits can use your facilities?
Something like 7 times per year?

OK - you probably have this all worked out.....

I don't know how you "account" for something like this unless you assign it
a value. Do you rent out the facilities as well? At least then there would
be a rental value established. So, I will assume that you have established
their value. Then the question becomes how to account for it.

One way might be to rent it to yourself or to the "tenant" and to pay
yourself for the rental. Then you'd have rental income and rental expense
that wash but could be used to create a P&L report that would show how much
of this kind of activity happens. Your accountant or bookkeeper should be
able to set up the appropriate income and expense accounts for this purpose.

The setup might look something like this:

Initial setup:
Income Account: Donated Space Income
Expense Account: Donated Space Expense
Customer: Our Own Donated Space In
Vendor: Our Own Donated Space Out
Item: Donated Space

Each "rental":
Invoice: Sells Donated Space item to "Our Own Donated Space In" going to
"Donated Space Income".
Customer Payment: Receives payment from "Our Own Donated Space Out" going
against "Donated Space Expense".... I think...

Or, the two above can perhaps be lumped into a Sales Receipt but I don't
have that format in my head.

If the formats don't exactly match what you want to do then you might set up
a memorized journal entry with the required income and expense. Doing this
may avoid setting up the Customer and Vendor and Item..... and you'd still
be able to run a P&L report.

Fred
 
M

Mike Webb

Thanks. Most of the folks who use our facilities are government (i.e. local
US Fish and Wildlife office, Nebraska Game and Parks Commision, etc.) and
academic (i.e., masters candidate students here for research).

I want to propose to the Board and the Executive Director that we charge for
these facilities. There will certainly be some groups we donate the use of
the facilities to, but I feel we ought to capture this in our P & L
statements for a better feel for where we stand overall and by program.

Mike
 
M

Mike Webb

Thanks. Most of the folks who use our facilities are government (i.e. local
US Fish and Wildlife office, Nebraska Game and Parks Commision, etc.) and
academic (i.e., masters candidate students here for research).

I want to propose to the Board and the Executive Director that we charge for
these facilities. There will certainly be some groups we donate the use of
the facilities to, but I feel we ought to capture this in our P & L
statements for a better feel for where we stand overall and by program.

Mike
 
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M

Mike Webb

Thanks. Most of the folks who use our facilities are government (i.e. local
US Fish and Wildlife office, Nebraska Game and Parks Commision, etc.) and
academic (i.e., masters candidate students here for research).

I want to propose to the Board and the Executive Director that we charge for
these facilities. There will certainly be some groups we donate the use of
the facilities to, but I feel we ought to capture this in our P & L
statements for a better feel for where we stand overall and by program.

Mike
 

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