Association Open Forum

Over the years there has been a lot of confusion about whether to treat certain types of transactions as contributions or as exchange transactions especially when it involves government grants. There has been further confusion if the transactions include donor-imposed dictates called restrictions or conditions. Many people including accountants don’t always know the difference between a restriction or condition and how to treat a transaction that has one or the other or both elements.

Effective for years beginning 2019 most Not-For-Profit entities will have to apply these new accounting rules to properly account for contributions received or made.

Make sure that you are aware of these new rules.  This could have a significant effect on how you present your financial activity.

Consult your auditor or accountant for more information.