{"id":1196,"date":"2017-11-28T15:34:08","date_gmt":"2017-11-28T22:34:08","guid":{"rendered":"https:\/\/cmcdllc.com\/?p=1196"},"modified":"2021-06-14T17:47:02","modified_gmt":"2021-06-15T00:47:02","slug":"december-2017-conditional-vs-unconditional-promise-to-give-2","status":"publish","type":"post","link":"https:\/\/cmcdllc.com\/?p=1196","title":{"rendered":"December 2017 &#8211; Conditional vs. Unconditional Promise-to-Give"},"content":{"rendered":"<p><strong>What is conditional promise-to-give?<\/strong><\/p>\n<p>Conditional promise-to-give is defined as a donor promise to contribute assets to a nonprofit organization upon satisfaction of specified or uncertain future events. For example, in Sep 2016 Donor A promised to give $100,000 to a nonprofit organization if the organization could obtain at least $50,000 from other fundraising activities by Dec 31, 2016.<\/p>\n<p><strong>Accounting treatment<\/strong><\/p>\n<p>Assuming that as of Dec 31, 2016 the organization managed to raise $55,000 and hence satisfied the condition. Therefore, in Dec 2016 the organization would recognize $100,000 promise-to-give as revenue (the corresponding account is Grants Receivable).<\/p>\n<p>In case the organization raised less than $50,000, it did not satisfy the condition and hence could not recognize the $100,000 revenue.<\/p>\n<p><strong>What is unconditional promise-to-give?<\/strong><\/p>\n<p>Unconditional promise-to-give is defined as a donor promise to contribute assets to a nonprofit organization without any stipulated conditions. For example, in Nov 2016 Donor A pledged to donate $5,000 each year for the next 5 years. In this case, accounting department would recognize $25,000 revenue in Nov 2016 (even though actual cash will be equally received in the next 5 years). <\/p>\n<p><strong>Evidence required<\/strong><\/p>\n<p>A promise-to-give should not be recognized as revenue without evidence of agreement with the donor. The best form of evidence is a signed agreement or letter from the donor laying out all the terms of the pledge clearly. If there are no such signed documents, no revenue should be recognized.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is conditional promise-to-give? Conditional promise-to-give is defined as a donor promise to contribute assets to a nonprofit organization upon satisfaction of specified or uncertain future events. For example, in Sep 2016 Donor A promised to give $100,000 to a nonprofit organization if the organization could obtain at least $50,000 from other fundraising activities by [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts\/1196"}],"collection":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1196"}],"version-history":[{"count":1,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts\/1196\/revisions"}],"predecessor-version":[{"id":1197,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=\/wp\/v2\/posts\/1196\/revisions\/1197"}],"wp:attachment":[{"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cmcdllc.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}