Case Studies in Not-for-Profit Accounting and Auditing

Chapter 10 CAPITAL CAMPAIGNS AND SPECIAL EVENTS

LEARNING OBJECTIVES

After completing this chapter, you should be able to do the following:

• Identify key accounting issues related to measurement of contributions related to pledges and special event costs associated with a capital campaign.
• Identify the use of present value techniques in measuring unconditional promises to give cash that is expected to be collected in more than one year.

TECHNICAL BACKGROUND INFORMATION

Many not-for-profit entities depend on contributions to pay for major capital projects and to build endowment funds. Such organizations often will have a capital campaign that will last several years and will result in donations that are received over a period of time. Donations can take the form of things such as cash or other assets—including securities, land, buildings, use of facilities or utilities, materials and supplies, intangible assets, services, and unconditional promises to give those items in the future.

KNOWLEDGE CHECK

1.     Which is true of capital campaigns?

a.     Donations can take the form of cash.

b.     Donations cannot take the form of securities.

c.     Donations cannot take the form of land.

d.     Capital campaigns last less than a year.

2.     Which is true of capital campaigns?

a.     Donations cannot take the form of buildings.

b.     Donations can take the form of the use of facilities or utilities.

c.     Donations cannot take the form of materials and supplies.

d.     ...