I've always treated donations received by a yacht club as revenue items, and small outward donations the same. Now they've made a large donation towards a capital project which will benefit the whole community as well as the club. This has reduced the excess income for the year to a very small figure!
Are there any grounds for capitalising the donation?
Replies (4)
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Look at what you have after the donation to determine the treatment - who will 'own' the asset after the donation?
If it is the Yacht club (eg - a playframe, which will be for all the community to use), then I would show as an asset.
If it is a contribution to part of a new village hall, then the yacht club will not have an asset so it is a revenue expense.
Is the Club a Registered Charity or some form of incorporated organisation? Or is it just a simple non-incorporated members' club?