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GAAP For Non-Profits › Specific Financial Statement Items

Contributions For Future Expenses

Where a contribution has been received for a future expense and an appropriate restricted fund exists, the contribution would be recognized as revenue of the fund when received or receivable.

Where no restricted fund exists, the contribution would be deferred and recognized in income as the related expense is incurred. (4410.31) See Deferred Contributions.

If, for example, an organization paid out scholarships, and had a restricted fund for scholarships, contributions for scholarships would be recognized as income of that fund when received. Otherwise, the contributions would be deferred in the general fund and recognized in income as the scholarships are granted and expensed.

Restricted within the Current Fiscal Period

A contribution restricted for use within the fiscal period would be recognized in the period. (4410.45)