066 Contributions

Expenses

Semi-Fixed

Synopsis

Contributions given to various non-profit organizations are recorded in Account 066, Contributions. Professional tax and accounting advice should be obtained regarding the proper identification of non-profit organizations and their eligibility to receive tax-exempt Contributions.

Debits

Credits

Donations and Contributions to religious, charitable, education groups, etc.

Example 1

Record a charitable contribution in the amount of $5,000 to the American Cancer Society. The Dealer principal initiated the contribution.

Journal: Cash Disbursements

Entry:		Debit	Credit
Account 066-09	Contributions – General & Administrative	$5,000
Account 202	Cash in Bank		$5,000

Distribution of Expenses

	Departmental Distribution
066 Contributions	New Veh.	Used Veh.	Lease & Rental	Mechanical	Body Shop	Parts & Access.	Gen & Admin.
	01	02	03	05	06	07	09
Contributions initiated by specific departments	When initiated by department manager	When initiated by department manager	When initiated by department manager	When initiated by department manager	When initiated by department manager	When initiated by department manager	When initiated by department manager

Comments

In order to control this expense, decisions should be made in advance as to which organizations will receive Contributions from the dealership. It is beyond the scope of this manual to discuss charitable organizations except to recommend professional tax and accounting advice in this area. Background checks should be made to determine if an organization is a legitimate non-profit entity.

Departmental Distribution