First things first, when do we recognise a donation?
What can we do with the money?
There are two types of donation. How do we deal with each?
How do we track donations?
Did we spend too little? Did we spend too much?
Donations may be one of the few sources of funding you can use to fund costs that will not be accepted by funders
Think through what kinds of donations you will not accept to save yourself a lot of trouble
You need to classify each donation as “unrestricted” or “restricted” (for a specific purpose or project) – and a lot depends on that classification
Bank statements can be enough to keep track of all your donation income and expenditure
Good management of donations will help you avoid debt