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Accounting for Fiscal Sponsors
Hi Folks,
A colleague and I have over a decade in nonprofit accounting experience, but both of us are new to accounting for fiscal sponsors. That said, when the fiscal sponsor makes their case for how funds should be tracked, if we disagree, we aren’t able to make our case effectively.
For model A, how do you account for general operating grants for projects considering the projects are restricted? Would the award be considered with donor restrictions since it’s for a project? If so, how do you show a project how much of their funds are unrestricted/without donor restrictions? Additionally, if you’re recording AR for a grant award that has a fiscal sponsor fee (which we know is earned revenue), do you leave the fiscal sponsor fee off the receivable?
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