by Ron
(Sonoma, CA)
We started our pledge campaign for the upcoming July - June fiscal year (it is now May).
We are receiving donations for these future pledges, most are a lump-sum donation for the entire pledge.
We would like to show those donations as stewardship in the new fiscal year, not the current fiscal year.
Can these donations be booked as "temporary restricted" since they are intended for the new fiscal year and then recognized as revenue in July?
1Comments
Pre-Paid Pledges
CCarrie at IconCMO
FASB did away with the term "temporarily restricted" a few years ago. You should only be using "restricted" and "unrestricted."
If you are looking to enter donations to count toward next year's pledges- this is a common scenario. How IconCMO handles this, is that you would go into the next Fiscal Year, enter the donation as a liability instead of a revenue. Use your current date so that money shows on your balance statement, but applies to the next year's campaign. Once the new fiscal year begins, you will want to change the liability to a revenue with a simple journal entry.
IconCMO has a lot of built in support and resources on our webpage and blog. Please feel free to visit www.iconcmo.com
If you are looking to enter donations to count toward next year's pledges- this is a common scenario. How IconCMO handles this, is that you would go into the next Fiscal Year, enter the donation as a liability instead of a revenue. Use your current date so that money shows on your balance statement, but applies to the next year's campaign. Once the new fiscal year begins, you will want to change the liability to a revenue with a simple journal entry.
IconCMO has a lot of built in support and resources on our webpage and blog. Please feel free to visit www.iconcmo.com