How to Account Your Earned Revenue
In the not-for-profit world, there are two types of revenue (as defined by tax law and accounting standards): contributed and earned. Contributed revenue includes monetary donations from individuals and corporations as well as grants from foundations and government agencies. Earned revenue includes ticket sales, program and service fees, and media sales. A good rule of thumb is that if a transaction represents the customer receiving a distinct item (a CD, a branded mug) or service ...
If You Aren’t Selling Flex Subscriptions, You’re Missing Out
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JCA Arts Marketing recently released a study measuring subscription sales at arts and culture organizations. While prefaced with a friendly “don’t panic” notification (Douglas Adams fans will enjoy that reference), they don’t sugarcoat their findings. While the data in this study may not be immediately encouraging, we want to emphasize that we should view subscription decline as an opportunity. There are many advantages to the subscription model, but there are also many disadvantages. Let’s take ...
Are You Ready For Mastercard’s New Recurring Payment Rules?
Earlier this fall, Mastercard issued new rules for merchants processing recurring credit card charges on its network (essentially, merchants who process recurring charges to a Mastercard-branded credit card, regardless of the issuing bank). As originally announced, these new rules would have presented extra and potentially burdensome administrative work for small nonprofits, including arts organizations, that have recurring monthly donations (though enforcement for the recurring donation case was due to begin later than for other types ...
Thank you for the authoritative read on this issue. To me, being able to actually see the icon in the…