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Non Profit 'Memberships' pre-paid dog training  

Joined: 1 year ago
Posts: 21
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Memberships questions-I'm helping a very small NPO in my area finally use QBDT. They are offering 'memberships' to folks looking for service dog training on a sliding scale. For example, one could 'donate' $500 and receive 12 service dog training sessions. They've tried to word an agreement stating no refunds and the money is a donation not a purchase (I haven't seen the actual agreement).

Should this be booked as a liability and accounted for as training sessions are used, since the membership benefits are specific not open ended? Or is it fine to just ledger as a general donation? If they ever get growing, I expect these 'memberships' to grow and involve higher 'donations' involving more training sessions which could take years to complete or use up. 


Joined: 1 year ago
Posts: 2

Good Afternoon,

This is a very good question.  First, you need to see the agreement.   If it is a true donation, then use a donation account.  Donation is defined as - not expecting to receive anything in return.  If not, it needs to be a liability until the service is performed.  Hopefully this helps. 


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