Nonprofit Fund Accounting: Restricted Funds, Grants & Functional Expenses
Classify net assets by donor restriction, journalise releases, recognise conditional grants, discount multi-year pledges, value in-kind gifts, allocate functional expenses with keys, read efficiency ratios and roll funds up into the statement of activities, every cell checked.
The first lesson is free — no account needed.
About this course
A nonprofit fund accounting course for finance staff, treasurers, board members and accounting students, built on one fictional charity's funds in a spreadsheet. You sort fund balances into net assets with and without donor restrictions and find the perpetual endowment, decide which events release a restriction and journalise them, recognise conditional and unconditional grants with a refundable advance and a capped quarterly schedule, discount multi-year pledges to present value net of uncollectible amounts, value in-kind gifts of goods, services and facilities, allocate shared costs to program, management and general and fundraising with allocation keys, compare program ratios and the cost to raise $1 and roll five funds up into a statement of activities. US standards (ASU 2016-14) and the UK SORP are referred to only in general terms. The first lab is free.
Lessons
- Net Assets With vs Without Donor RestrictionsFree
- Releasing Restrictions: Journal Entries When Conditions Are Met Pro
- Grant Revenue: Conditional vs Unconditional and a Quarterly Schedule Pro
- Pledges Receivable: Discounting Multi-Year Pledges to Present Value Pro
- In-Kind Donations at Fair Value: Goods, Services and Facilities Pro
- Functional Expense Allocation with Allocation Keys Pro
- Program Efficiency Ratios: Program Ratio and Cost to Raise $1 Pro
- Statement of Activities: Rolling Funds Up into Net-Asset Classes Pro