USA Non Profit Income - is it Programs, Admin, or Fundraising?


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Helping a non-profit transition to Quickbooks. They have many individual donors to send money to specifically help the company maintain the salaries of certain staff members. Example: Joe Doe sending $100/month to support the employment of Jan Rogers. Is this income temporarily restricted or unrestricted? Should they class as Programs, Admin or Fundraising? The company will not reduce Jan's salary is Joe Doe stops sending the money... Joe is simply helping the company maintain their ability to pay competitive salaries to employees. Thanks!
 
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Fidget

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Possibly just call it 'donations'. Whether or not the use of it is restricted will be on the basis of whatever the organisation has said the donations will be used for.
 
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thought about this over the weekend. I believe marking the income under fundraising is appropriate. As for the payroll expense I'll ask them to calculate an approximate percentage of time each employee spends on various projects and then expense that percentage under programs and the remainder under admin... and maybe a little under fundraising.
 

Fidget

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As long as you've got a logical method, you can split it as you please. You just need to take into account restrictions on any money raised for a specific purpose.
 
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Employees in some nonprofits and especially religious missionary organizations have to raise their own support in order to continue working. We set a salary, benefits, and ministry expense budget for the missionary. Then they raise funds. Checks received are made out to our organization but in the comment field it will say "staff support for John doe." It is posted as revenue to the missionary's department (campus ministry) and posted as Staff Support Revenue to the missionary, and not to fundraising or development. It is posted as a donation without donor restriction. In most cases the minister will use it up within 12 months. At the end of the fiscal year we calculate the excess Staff Support not used in the fiscal year and post it as Excess Staff Support Revenue as a donation with donor restriction in Net Assets. And, yes, in missionary organizations, if the missionary is underfunded or has no funds, he/she gets paid less or not at all until he/she is fully funded again.
 

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