I have a lot of expensed paid by the CFO of our Nonprofit. I would like to record them correctly, because they truly are expenses. The CFO will consider this as donations. How is this accomplished. I have been entering all the little receipts as bills. Perhaps that is not correct.
Hey AmaznAmy,
I would record them as a donation if he has receipt to provide for your records.
Check with your accountant if you have one. I would group them all together, then using them as your backup docs, record a cash receipt from the CFO because he expended cash on your NP behalf, and then post the expenses to the appropriate expense accounts.
I would also make sure that the items being purchased were valid needs.
Then this could be handled the same way as petty cash expenditures, really depends on what your board wants and if they meet the requirements of the taxing authority, the IRS.
