Hello, I was wondering how would I tag/reconcile the following?
As a non-profit who support a creative community, we sometimes give money to others in the form of small funding pots or grants. An alternative would be we pay for something in order to help fund a project, so we may pick up an expense rather than give the money direct.
Two scenarios would be:
a lump of cash as grant/funding
paying for something like materials or a flight in order for them to achieve a project
Many thanks.
We are in the same position, We would typically use “8200 Donations” although we do try and link funding to our own marketing (eg we provide flyers for an event with our own details as well) which can then go in one of the marketing categories.
I must qualify this of course by saying that I am not an accountant,.
You can create new expense categories for this if you like, if you are charity as well then important thing to distinguish is if spending qualifies as charitable purpose as per charity’s constitution if not this spending will be subject to income or corporation tax
Thanks both, perhaps I’ll use ‘donations’ for now and ask the accountant to double check it at year end.