Decision Walk: classify a foundation award
Use a structured decision path to classify a foundation award as exchange, conditional contribution, or restricted contribution.
Award intake A foundation agreement promises $250,000 for outreach if 500 eligible clients are served by June 30. Unspent or unsupported funds must be returned. The accounting answer depends on the agreement mechanics, not the label grant or contract. FASB award logic Value -> Condition -> Restriction Move in order. First ask whether the funder receives commensurate value. Then ask whether a barrier and right of return create a condition. Then ask whether recognized revenue carries a donor purpose or time restriction. Label Calling it a grant is not enough. The entry follows the agreement's substance. Do not recognize contribution…
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