USA NFP and revenue recognition

[AnitaAmeen]

We received a donation that will span over 6 months, all falling in our fiscal year. The donations are paid monthly over the 6 months for services to be provided each month. The services may not be provided evenly each month. For example $60k donation payable to the NFP at $10k per month. The services will most likely not be evenly provided over the 6 months. For example: $20k April, $10k May, $15k June, $5k July, and $10k August. Would you record the entire donation now at $60k or as deferred revenue at $60k? If deferred revenue, would you adjust each month based on the payment schedule from the donor ($10k) or based on the value of the services provided (i.e. $20k in April)?

 

[kirby]

Pledges Receivable: Explaining the Basics to Your Development Department | Nonprofit Accounting Basics

See above. Depends on wording of the pledge.

 

[ALY HAMDY]

Hello, AnitaAmeen
I believe that you should recognize revenue when it is earned. so
when and only when the service has been provided to the customer only then you can recognize the revenue.
as accrued accounting states so I recommend the following journal entry:-
1 When the service has been provided to the customer
DR/Customer or Bank
CR/ Revenues

I hope this recommendation is going to be useful to you.