A Case Study in the Net Reporting of Special Event Revenues and Costs

Abstract

This article presents a case study of a well-known nonprofit organization, Susan G. Komen for the Cure, with a large and visible series of fundraising charity walks. The organization did not report or disclose the walks' gross revenues and fundraising expenses separately in its financial statements over a seven-year period. Instead, the organization recorded only its share of the net proceeds as contributions when the cash was received. This accounting treatment helped Komen meet the Better Business Bureau's standards for accountability and achieve a top rating from Charity Navigator.