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Contribution for Future Pledge Period

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?

Comments for Contribution for Future Pledge Period

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Jun 21, 2022
 Pre-Paid Pledges
by: Carrie 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

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Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



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