Download Our Capitalization & Depreciation Policy Template
What is a Nonprofit Capitalization & Depreciation Policy?
A nonprofit capitalization and depreciation policy establishes guidelines for appropriately accounting for your nonprofit’s assets and evaluating their depreciation over time. It underscores the significance of correctly recording asset values and ensuring compliance with accounting standards.
By adhering to this policy, your organization can ensure accurate asset accounting and appropriate recognition of depreciation, allowing you to make strategic decisions about what you own and how best to utilize resources to achieve your goals.
Use This Accounting Template To…
- Define the criteria for capitalizing assets, including review schedules based on industry best practices and your organization's financial policies.
- Outline the procedures for estimating assets’ useful lives and recognizing and recording depreciation expenses.
- Develop a review process to be used in case of asset disposal or impairment, including how to record and recognize gains and losses from these situations.
- Maintain proper documentation to support capitalization and depreciation records, which helps promote transparency with stakeholders.
Talk to an expert
For bookkeeping and accounting support beyond these templates, get in touch with the Jitasa team.
Request a QuoteAdditional Resources
If you’re interested in investing in a trained accountant to help your nonprofit ensure transparency and accountability in finances, conduct your research. Here are some additional resources you can look into for more guidance:
Working With a Nonprofit Accountant: What to Expect
Working with an accountant can help your organization develop an effective budget. Read more about what an accountant can do for you in this comprehensive article.
What to ExpectBookkeeping and Accounting for Nonprofits
Looking to hire or outsource a finance team? Learn more about both bookkeeping and accounting for nonprofits, specifically about the difference between them.
Jitasa’s ServicesTop 10+ Outsourced Nonprofit Accounting Firms
Working with an accountant specifically dedicated to nonprofits is important for developing a well-informed nonprofit budget. Learn more about Fundly’s top ten picks for outsourced firms.
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