Classification: Protected A
Assignment 3A: Stratford House
Stratford House is a non-profit organization that operates an emergency shelter for women and their children
in Vancouver. Stratford House earns fee income by providing presentations and information sessions on
domestic abuse at workplaces, in schools and for other groups. In addition, the organization also receives
government grants and generates some fundraising income each year. Stratford House was incorporated
with help from a wealthy private citizen and is governed by a volunteer board. The organization started
operations on June 1 2015 .
Stratford House has hired a fundraiser to assist in planning and executing fundraising
activities for the organization. During the fall and winter, the organization undertakes a number of fundraising
activities.
Part 1: The following information is available about the fundraising activities.
- Fundraising activities in October and November raised $7,500 and
$5,000 respectively. Donations made up 21% of this
revenue, with the balance being pledges. The fundraiser expects that the
fundraising activity until the third quarter will yield the following
amounts each month:
December $11,500
January $9,500
Fe
uary $11,400
March $10,260
- The split between cash donations and pledges experienced in October and November
are expected to continue until the end of March.
- The organization has found that 72% of a month's pledges are
received in the month following the pledge (1 to 30 days), with the remainder
received the following month (31 to 60 days).
- The fundraiser charges a fee for the fundraising activities of 45%
of all income (donations and pledges) declared in a month. Stratford House
records the fundraising cost in the month it is incu
ed and pays it in the following
month.
Part 1 Instructions:
Prepare a forecast, for October to March, of net fundraising revenue for the organization. Use Excel
for all of this work, to assist with accuracy. Prepare this report to an appropriate business standard.
Classification: Protected A
Part 2: The following information is available about past due pledges:
- The following pledges were made at the monthly fundraisers:
Date Donar Pledge
January 5 Smith $250
January 5 Acco $875
January 5 Swinston $465
Fe
uary 14 Kieso $390
Fe
uary 14 Sui $745
Fe
uary 14 Elba
ad $975
Fe
uary 14 Kayak $1,050
March 11 Young $575
March 11 Wiecek $287
March 11 Lee $355
- The organization has historical information that the following pledges
outstanding will default:
0 to 30 days 1%
31 to 60 days 4%
Over 61 days 7%
- Today's date is March 31
Part 2 Instructions:
Prepare a pledges report with an aging analysis by month for January to March.
Calculate the total estimated uncollectible pledges on March 31 and prepare the appropriate
journal entry to record the uncollectible pledges. Use Excel for all of this work, to assist
with accuracy. Prepare this report to an appropriate business standard.
IA3 Template
Forecast March to April
Forecast October November Dec January Fe
uary March
Donations $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Pledges $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Total $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Receipts
Donations $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Pledges:XX% na $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Pledges:XX% na na $ - 0 $ - 0 $ - 0 $ - 0
Total $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Costs
Per Month $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Lagged Payment $ - 0 $ - 0 $ - 0 $ - 0 $ - 0 $ - 0
Net Forecast Revenue $ - 0 $ - 0 $ - 0 $ - 0
Aging of Accounts Receivable and Allowance for Doubtful Accounts Report
Donor Name Pledges ($) Pledge Date 0 to 30 31 to 60 61 to 90
Smith $ - 0 0
Acco $ - 0 0
Swinston $ - 0 0
Kieso $ - 0 0
Sui $ - 0 0
Elba
ad $ - 0 0
Kayak $ - 0 0
Young $ - 0 0
Wiecek $ - 0 0
Lee $ - 0 0
Total $ - 0 $ - 0 $ - 0 $ - 0
% Uncollectible 1% 4% 7%
AFDA $ - 0 $ - 0 $ - 0 $ - 0
Dr Uncollectible Pledges Expense
Cr Allowance for Uncollectible Pledges
&1#&"Cali
i"&11&K000000Classification: Protected A