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This is a true story. The events depicted in this newsletter took place in Fort Worth. At the request of the agency’s finance department, the names have been changed. Out of respect for the donors, the rest has been told exactly as it occurred.
Okay, it’s not usually that dramatic, but I’m sure you have a story like this one. You’ve compiled all the necessary financial documents for that big grant request, and you notice the operating budget line called “individual contributions” is waaay lower than it should be. And, wait, didn’t we receive that restricted $20,000 gift two months ago, but our balance sheet only shows $10,000 in restricted funds!?
Well after some sleuthing (i.e. panicked phone calls), the new volunteer bookkeeper calls back. A spirited discussion about the appropriate way to record gifts from donor advised funds and gala contributions ensues. And, by the way, here are the receipts showing $10,000 of expenses for the project that donor funded. When the dust settles, this comedy of errors concludes with some great lessons learned… I won’t say who did the learning in this case.
Securing a gift is an important part of fundraising, but we all know there won’t be a second gift if the first isn’t stewarded properly and if that stewardship isn’t communicated clearly. And, friends, I’m nearly illiterate when it comes to GAAP, P&L, ACCG, etc. Luckily, we have a brilliant CPA at our next meeting to help us all learn how accounting and fundraising professionals can support each other in making our nonprofits successful!
See you at ACH on March 20 for our next program.
Wesley Gentle, CFRE
AFP Fort Worth Metro Chapter President
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