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- Dec 28, 2017
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I don't know how to record the profit from a grant program.
With a normal public class we charge a fee that includes instruction time and materials as Class Revenue. Then we have COGS for direct expenses from the classes such as labor and taxes and the materials. Whatever is left over is our profit.
Accounting for a grant we received for an educational program, the prior treasurer figured expenses by what we paid the instructors and other direct expenses.
There was no account for the profit that is usually left over to go towards our overhead or furthering our mission. How she had it shows we did the program at less than our cost since it didn't take into account any overhead expenses. It shows a unused balance that should be alloted to our general fund (profit?), not excess funds still left to be spent.
I'm using a Project to keep track of the grant.
Also, how detailed of a report needs to be available if the donor wants to see the numbers? Should it just show Program Instruction (labor including profit) and Program Expenses, or should it breakdown the actual labor costs and show the profit as "overhead"?
Thanks, looking forward to your answers!
With a normal public class we charge a fee that includes instruction time and materials as Class Revenue. Then we have COGS for direct expenses from the classes such as labor and taxes and the materials. Whatever is left over is our profit.
Accounting for a grant we received for an educational program, the prior treasurer figured expenses by what we paid the instructors and other direct expenses.
There was no account for the profit that is usually left over to go towards our overhead or furthering our mission. How she had it shows we did the program at less than our cost since it didn't take into account any overhead expenses. It shows a unused balance that should be alloted to our general fund (profit?), not excess funds still left to be spent.
I'm using a Project to keep track of the grant.
Also, how detailed of a report needs to be available if the donor wants to see the numbers? Should it just show Program Instruction (labor including profit) and Program Expenses, or should it breakdown the actual labor costs and show the profit as "overhead"?
Thanks, looking forward to your answers!