Quinn
Forum Replies Created
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I’d say yes, you can fundraise specifically for an event, but the wording of the appeal matters. If donors are told their gifts must fund that event, I’d treat those amounts as donor restricted and track them separately. If it’s simply the organisation’s chosen use, they’re generally unrestricted.
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Yes, that could potentially be a condition, but the wording of the grant agreement matters. Under ASC 958-605, specific requirements around qualifying expenses can create a barrier to entitlement, particularly where funds must be returned if those requirements aren’t met.
If it is conditional, I’d generally expect revenue to be recognised as the conditions are met, rather than booking the entire award immediately. For a multi-year grant, that could mean recognising amounts as each year’s qualifying requirements are satisfied. -
I’d lean towards recording the organisation’s share as revenue and the winner’s share as a liability, rather than treating the entire pot as revenue and the payout as an expense. The key is whether the organisation has control of the full proceeds or is holding part for the winner. I’d confirm the treatment with your accountant, particularly because raffle and gaming rules can vary by jurisdiction.
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I think outsourcing some of the bookkeeping is a good option, especially with a volunteer board. You could also ask local accounting firms about nonprofit services. Whatever route you choose, I’d keep clear separation of duties and board oversight around cash and payments.
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I’d be interested in seeing examples of this as well. Digital transactions introduce a few extra considerations around authorisation, documentation and audit trails. A policy that keeps those controls clear while remaining practical would be especially useful.
