[GNC] Club membership fees and charitable contributions - Business Features or Assets?

[Adrien Monteleone]

Thanks for the clarification and explanation. Posts like this are an excellent example of how useful this list is.

Regards,
Adrien

> On Aug 2, 2019, at 2:18 PM, Mike or Penny Novack <stepbystepfarm at comcast.net> wrote:
> 
> On 8/2/2019 1:21 PM, Adrien Monteleone wrote:
>> Yes, I understand they are different. The Business Features *could* still be used, just not considered in a formal way.
>> 
>> But certainly, manual entries are possible.
>> 
>> The tough part of pledges is they really don’t go anywhere in the account tree that I can see.
>> 
>> They are not assets, not AR from a legal standpoint, not liabilities, not income, and since none of those, not equity either. Perhaps they should be tracked separately since trying to do so in GnuCash requires shoehorning something of the app to fit. But if one likes using shoehorns...
>> 
>> Regards,
>> Adrien
> Sorry, but PLEDGES (unlike membership dues, etc.) are receivables. But only according to the terms of the pledge. If you pledge $X (unconditionally) that is a current receivable of $X. If you pledge $X in each of the years 2019, 2020, and 2021 then only $X is receivable now, $X more becomes receivable after Jan 1, 2020, etc.
> 
> Membership dues are not receivable when billed because legally a member can quit at any time. Rules of the organization may require notice, permission to demit, etc. but are not enforceable unless the member later seeks to rejoin.
> 
> HOWEVER --- charities and other non-profits rarely seek to enforce pledges because except in the circumstances where would not cause bad publicity. Thus if somebody (who clearly had the money) pledged 10 million to their college endowment fund but dropped dead of a heart attack before sending it they probably WOULD approach the executor of the estate asking for it. But might not go to court if turned down.
> 
> Michael D Novack
> 
> PS: This is the reason why charities, etc. like to have you make a pledge (and set up automatic payment) of $Y/month. Because it IS then a receivable for them.