• Your Community Awaits

    Expensing Against Restricted Funds

    Posted by Sean on September 5, 2024 at 10:34 am

    Hello, we are raising funds in order to donate product (books) to prisons, schools, etc. Should we expense the manufacturing cost of the book against this campaign or the sales/retail price of the product?

    Wade_Rogers_Forum_Moderator replied 1 year ago 3 Members · 2 Replies
  • 2 Replies

  • CoFounder_Structural_Integrity

    Member
    September 5, 2024 at 1:20 pm

    Sean, if your organization manufactors the items to be donated, you should use the funding to cover the manufactoring costs (restricted funding would be fully draw down by actual expenses incurred).

    My thinking is if a book costs $10 to manufactor and is sold for $15, a $15,000 donation would allow for for the donation of 1,500 books, not only 1,000. Otherwise, you received $15,000 in donated revenue and only consumed $10,000 of it, leaving $5,000 of restricted revenue on your books.

    I am open to others perspectives on this as I have not managed this situation myself and I am not a CPA.

    With gratitude,

    Dave

  • Wade_Rogers_Forum_Moderator

    Member
    September 9, 2024 at 9:26 am

    Hi Sean and Dave, and thanks for participating in the forum! Not knowing all the specifics, I would see the restricted funds as going to the cost of producing the books (as well as any related costs like administration of the donation, shipping, etc). If the donors were donating the books as an in-kind contribution you would value that at the market value of the books but since you are having the books produced yourself I would see the donated funds simply covering the production and related costs. Looking forward to hearing from the community!

Start of Discussion
0 of 0 replies June 2018
Now

Report

Harassment or bullying behavior
Contains mature or sensitive content
Contains misleading or false information
Contains abusive or derogatory content
Contains spam, fake content or potential malware

Block Member?

Please confirm you want to block this member.

You will no longer be able to:

  • See blocked member's posts
  • Mention this member in posts
  • Invite this member to groups
  • Message this member
  • Add this member as a connection

Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.

Report

You have already reported this .

On October 8, 2025, Join Us for a National Town Hall on the Financial State of the Nonprofit Sector

Nonprofit GPS is a new, action-based community designed to help nonprofits navigate today’s disrupted revenue landscape. Built in consultation with organizations nationwide, it focuses on the real financial challenges nonprofits face — business model risks, capital management, budgeting, governance, and more. Together, we’ll share practical strategies and highlight bright spots of practice that strengthen missions, even in the most disruptive times.

At this event you will hear: an analysis of the current economic landscape for nonprofits and the implications for practice; what array of critical new resources will be offered by Nonprofit GPS over the next three months and beyond; and how to become involved as a practice leader in this community.
Register here today!

Join a space designed to foster support, inclusivity, and respect for every voice.

Ask questions, share experiences, and connect with peers and experts who value your insights. Your contribution is invaluable - forum members bring a wealth of knowledge and experience, crucial for mutual growth and learning. We cherish your expertise and would love to have you enrich our forum! Let's build together, learn together, and support one another.
Visit the Forum!