This is income from individuals, foundations, inheritances, or companies that wish to support the nonprofit organization’s mission. Donations may take the form of money, goods, rent-free use of space, services, and the like.

If fundraising is conducted through a third party—such as a company that collects donations on the street or by phone—revenues and expenses must be reported on a gross basis. If the company conducting the fundraising takes 50% of the funds raised, 100% of the revenue must be reported in the financial statements, and the “company’s” 50% must be reported as a fundraising expense.

Take me to “Revenue from Operating Activities”

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Glossary – Activity-Based Accounting