I do the bookkeeping for a charity, and have just found out that the rent on their office is paid by a benefactor. The landlord invoices the benefactor directly, so the money doesn't go through the charity's accounts at all.
My question is, should this be classed as a donation to the charity?
yes, it's basically off balance sheet financing which is currently making the charities income understated and outgoings understated by the same amount.
It needs to be accounted for properly.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.