The bottom line – How to account for special events

Description

Abstract: More and more nonprofits are turning to special events as a major source for generating funds. As if event planning isn’t complicated enough, organizations also must take care to properly present the associated revenues and costs in their financial reporting. Certain amounts related to special events must be reported on financial statements in categories other than fundraising. This article describes three options that nonprofits have for reporting most such events on their Statement of Activities. In any case, proper financial reporting will require careful tracking of an event’s transactions.