Skip to main content
April 13, 2021
Question

I am managing QuickBooks Online for a non-profit. There are classes that receive donations and accumulate. How do I get a year end surplus to carry into the new year?

  • April 13, 2021
  • 1 reply
  • 0 views
Original commenter did not share additional details

1 reply

LeithG
April 13, 2021

Hi Charmaine

 

As with a for-profit organization with a profit or loss, a non-profit surplus or deficit will carry over to the new year falling off the income statement, and onto the balance sheet.

 

Unlike a for-profit organization however, the surplus does not go into 'shareholders equity' but gets stored for future use against the mission of the non-profit.  Note that most non-profits must have donor's permission to reallocate funds to other parts of the mission if the donation was given to a specific cause and that particular cause has been completed.

 

A good little short article on this can be found here: https://www.growthforce.com/blog/a-quick-guide-to-nonprofit-surpluses-and-deficits

 

Hope this helps!