The money is in the bank, the pledge is secured, the silent auction exceeded your expectations – is it time to relax? Not quite. You still need to make sure the revenue is flowing into the right categories in order to paint a clear financial picture of your organization.
Think of reporting revenue as a Paint-By-Numbers kit. Nonprofit revenues can be divided into different “paint buckets” and the chart of the accounts is like your Paint-By-Numbers template. If you use the right bucket to identify your revenue, you will paint a beautiful numerical picture of your organization.
However, if you do not code your revenues correctly, you will mix the paint colors and your financial picture will turn gray and cloudy.
Proper setup of your account structure is key. There are tools for guidance in setting up a comprehensive chart of accounts for your organization. Here are two tools to help guide you:
- Federated Campaign
- Individual Giving
- Membership Dues with no benefits
- Program fees
- Contract fees
- Membership dues – benefits portion
- Exchange vs Non-exchange of
- Reporting net of direct expenses
Unrelated Party Income
If you have any questions about your account structure; or how to code revenues streams, please reach out to your accounting professional at Support KC. Let us help you create your masterpiece.
K. Christy Cubbage – Rigby
Director of Client Accounting
Support Kansas City, Inc.