Accounting principles for the statement of income and expenditure Income and expenditure are attributed to the period to which they relate. All proceeds are entered as income for their gross amount, unless explicitly stated otherwise. Costs necessary to realize certain income are presented as expenditure in the statement of income and expenditures.
Income raised Income from private individuals, companies, churches, and schools is recognized as income in the year of reception, or moment of signing a contract. It includes the income from door-to-door collection, legacies, contributions, donations, and gifts. Donations in kind are valued at fair price. Legacies are recorded as income in the year in which the notary has communicated the content of the deed, or “akte van scheiding en deling.” Donations and legacies still under usufruct by the donating party are recognized in the year the usufruct ends; in these financial accounts they are presented as off-balance sheet receivables. Income recognition related to projects implemented by partners is based on periodically received expenditure reports. Contributions from other non-profit organisations are accounted for as “income from other non-profit organisations” at the amount received by the organisation. They are recognized in the year that income from the campaign by other non-profit organisations was received or pledged by this party. Campaigns by other non-profit organisations only include campaigns for which ZOA does not bear any risk.
Project grants for consortia partners Project grants for consortia partners are recognized as both income and expenditure in the statement of income and expenditure
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in the year of the contractual spending obligation.
Project grants for ZOA Operating grants are recognized in the statement of income and expenditure of the year that includes the subsidized expenditure. Losses are taken into account if they originate in the relevant financial year and as soon as these are anticipated. Grants received in kind - often food and relief supplies - are valued at the cost stated in the contract relating to the goods. If the contract does not provide for this, the goods will be valued at fair value at place of delivery. If received goods are not based on a contract and a reliable valuation is lacking, the transaction is not accounted for in the statement of income and expenditures.
Income in exchange for the delivery of products and services Income raised from products or services delivered are presented as net figures. The gross income is deducted with the direct costs and reported as net income.
Costs Stakeholders also require insight into the level and breakdown of the costs of fundraising organisations; the notes provide a specification of these costs in accordance with model C of the RJ 650 guidelines. Employee costs (salary, social security, pension, etc.) are not presented as a separate item in the statement of income and expenditure. These costs are included in other components of the expenditure.
Spent on objectives Expenditures spent on objectives include amounts allocated for activities designed to meet the objectives during the financial year as well as implementation costs. Expendi-
tures include subsidies to local partners, food and relief goods purchased, cost of deployed personnel, transport costs, local accommodation costs, and office expenses. It also includes the acquisition costs for means of transport and office inventory which might be made available to the local partner after the project has ended.
Fundraising expenses All costs incurred for activities aimed at encouraging people to donate money toward one or more of ZOA’s objectives are earmarked as costs for fundraising. This means the costs for publicity and public relations are regarded as costs of fundraising unless
