Charities receive various different types of grant and contract-based income, which may come from government, local authorities, the National Lottery or other sources. Like all income, income from grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be recognised reliably. Grant income may be subject to conditions or restrictions that impact the extent to which the grant can be recognised within income.
Example – grant conditions In May 20X1, Charity A has received a £30,000 grant from the National Lottery to fund six work experience placements over a period of six months, starting on 1 June 20X1. At 31 December 20X1, the charity’s year end, the charity had successfully placed four individuals in suitable positions with a total spend of £20,000 made on the work placements. Under the terms and conditions of the grant, amounts unspent at the end of the six-month period must be repaid to the donor. C |
