This is probably a simple question to answer but I am a bit stumped!
I have been instructed to do the accounts of a local charity who provides support and arranges activities for local teenagers.
They often arrange 'days out' and various activities for the teenagers to take part in paid for by the charity (donations are made by the parents). How would you account for these activities? Would they be labelled as 'events'? And would they appear as an overhead in the income and expenditure account?
I do accounts for a not-for-profit organisation and whenever events are organised such as these i would record them in direct expenses and not overheads. I would class overheads as overheads of the business such as telephone, rent etc... whereas the core activities of the business such as events would be recorded in the direct expenses.
If you use Sage, it would be in the 6000 nominal, if you do not have a nominal labelled events, i would create one and record costs in there.
Having worked for a national charity in the past, I recommend going to the Charities Commission website and downloading a copy of SORP (the Statement of Recommended Practice for charities), because the rules for charity accounting are subtly different, and it's worth making sure you're compliant.
Best,
Steve
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Steven Emsley/01302 310 186/07774 264 073/www.legerbusiness.co.uk
