what accounts to set up and entries to make for grants--HELP

[annie9800]

I am taking over a set of books for a small nonprofit and I don't think entries for grants were done correctly. I have looked in Ivens book and didn't find enough detail. What accounts & entries do I need for this situation: a grant has been promised worth $5,000, its funds are restricted for a specific program, the money is not awarded up front but is reimbursed (we submit invoices showing we paid the services, then they reimburse us).

The previous bookkeeper recorded the promised money as an A/R, then as income as the funds were received. I don't think this is right. I want to use "Temporarially Restricted Net Assets" , at least it seems this should be part of the entries?

[David Palmer]

Two comments:

1. If you insist on recording Accounts Receivable for the promised grant amount, you enter a credit to an Unearned Grant Income account.

2. When you receive funds from the grant to reimburse you for expenses you have already incurred, they are not restricted funds. Restricted donations are for a project to be done. When funds are expended for these restricted fund projects, the donation is released from restriction.

[pierrew]

Annie do you know of any one who has setup qb for a non for profit theater? what industry are you in? pierre in NYC