Government-Grant vs. Individual-Gift Revenue Routing Guide
A decision guide for the mixed-revenue reality of human services, helping development and finance correctly classify, segregate, and account for individual gifts, private grants, government awards, and in-kind support.
Draft: pending review
This starter document is signed off by Nonprofit counsel + grants-compliance/Uniform Guidance CPA + CFRE before it ships. The guardrails below define that review.
What’s inside
- Revenue-type decision tree: unrestricted, donor-restricted, private grant, government award, in-kind
- Fund-accounting routing map showing which bucket each revenue type enters
- Government-award compliance snapshot (allowable costs, match, reporting, audit exposure)
- 'Do not co-mingle' controls and the fundraising-to-finance handoff checklist
Legal & ethical guardrails
The sector-specific compliance points this document must honor.
- Federal awards carry Uniform Guidance (2 CFR 200) obligations — allowable-cost rules, procurement standards, Single Audit exposure — that individual gifts do not; misclassification creates findings and repayment risk
- Donor-restricted and government-restricted funds must be tracked separately and cannot backfill unrestricted operating dollars
- Federal funds cannot supplant existing funding; under 2 CFR 200.442 fundraising and organization costs are GENERALLY UNALLOWABLE against a federal award (not merely restricted). Single Audit applies at $1,000,000 in federal expenditures (FYs beginning on/after Oct 1, 2024); charged costs must be allowable, allocable, and reasonable
- In-kind used as grant match has specific valuation/documentation rules distinct from gift-acknowledgment rules
Held for professional review.
The native DOCX and full working text ship only after sign-off by Nonprofit counsel + grants-compliance/Uniform Guidance CPA + CFRE on this exact version. The summary and review requirements remain visible in the meantime.
Not legal advice. Not legal, tax, or accounting advice. The Fundraising Co. provides educational fundraising materials and is not a law firm; nothing here creates an attorney–client relationship or substitutes for advice from professionals licensed in your jurisdiction. Laws and IRS rules vary by state and change over time. Review every document with qualified counsel before use.