The contributions account is a revenue account used by nonprofit entities. It is intended to record all donations received from third parties that are intended for the use of the nonprofit.

The term is also used by all types of entities as a general ledger expense account. In this role, the account is used for the recordation of all contributions made to other entities. The account may be further split into taxable contributions and nontaxable contributions accounts, if necessary.

Related Courses

Nonprofit Accounting