Nonprofit Fund Accounting: Restricted Funds, Grants & Functional Expenses

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Sort nine fund balances into the two net-asset classes, find the perpetual endowment and the money that is really free to spend.
• Decide which events release a donor restriction, journalise five events and roll the restricted net assets forward.
• Decide when four grants become revenue, find the refundable advance and build a capped quarterly schedule for a cost-reimbursement grant.
• Discount four years of unconditional pledges, net them for uncollectible amounts and find next year's discount unwinding.
• Value six in-kind gifts, decide which ones are recognised and total the recognised and the disclosed-only amounts.
• Turn staff hours, floor area and IT users into allocation keys, spread six cost pools over program, management & general and fundraising, and chart the result.
• Compare two years of program, admin and fundraising ratios, the cost to raise $1 and the dollars raised per $1 of fundraising, and test them against watchdog guidelines.
• Roll five funds up into the Without and With columns of the statement of activities with one horizontal SUMIF, then find the change and closing net assets.