cancel
Showing results for 
Search instead for 
Did you mean: 
TBraddock
Level 1

Startup Costs Paid by Another Organization

We are a new 501(c)3 nonprofit corporation set up for educational purposes. Our initial startup costs were paid through a different organization (they are posting this as a grant). Since the expenses were directly paid by this other entity for startup costs associated to the new entity, how would this be recorded for the new association? No money transferred into the bank account. Would it still be considered grant income and expense and recorded as a journal entry? 

Solved
Best answer September 16, 2020

Best Answers
Rustler
Level 15

Startup Costs Paid by Another Organization

Create if you do not have it, a cash type bank account

deposit the funds in the cash account using grant income as the source account for the deposit

then pay the startup expenses from that account

View solution in original post

2 Comments 2
Rustler
Level 15

Startup Costs Paid by Another Organization

Create if you do not have it, a cash type bank account

deposit the funds in the cash account using grant income as the source account for the deposit

then pay the startup expenses from that account

TBraddock
Level 1

Startup Costs Paid by Another Organization

Thank you. I created a Cash 'In Kind' grant asset account  and a corresponding grant income account. I was able to then clear it with the corresponding expense entries. 

Need to get in touch?

Contact us