Revenue categorization is the process of systematically grouping an organization’s income streams based on their source, purpose, or restrictions. For nonprofit organizations, this means distinguishing between types of revenue such as grants, donations, membership fees, program income, and fundraising event proceeds. Accurate categorization is essential for financial transparency, regulatory compliance, and informed decision-making. It helps nonprofits track where funds are coming from and whether they carry any donor-imposed restrictions, ensuring that resources are allocated appropriately. This process also facilitates the preparation of financial statements and grant reports, which often require detailed revenue breakdowns.
It improves transparency, ensures compliance with donor restrictions, and supports accurate financial reporting.
Keela lets you assign categories to each revenue entry, simplifying reporting and ensuring funds are tracked correctly.
Typical categories include grants, donations, membership fees, program income, and fundraising event proceeds.
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