ISEN-ASTC-L is a service of the Association of Science-Technology Centers
Incorporated, a worldwide network of science museums and related institutions.
*****************************************************************************

This is a fairly common practice (accuring membership income) and accountants generally favor it.  However, for small museums where memberships often come in as the result of an annual drive or annual re-newal it makes sense to keep membership on a cash basis.  You more fairly represent the true nature of your business by showing the seasonal nature of membership income and expenses.  Your accountant may disagree, but I think the cash basis is preferable - for at least smaller museums.

                   Ed Sobey


>
> From: mike katz <[log in to unmask]>
> Date: 2004/03/26 Fri PM 03:15:06 GMT
> To: [log in to unmask]
> Subject: Membership Fees and Accounting Nightmares
>
> ISEN-ASTC-L is a service of the Association of Science-Technology Centers
> Incorporated, a worldwide network of science museums and related institutions.
> *****************************************************************************
>
> Gotta love the accountants.
> I've never heard of spreading the income from membership gifts over 12 months. This is
> not a rental agreement, this is an unrestricted donation. We count all of our donations,
> including membership gifts at all levels,  at the time they are received. Even if we
> didn't have a building, we'd have memberships; the fact that they expire in 6 months or
> 12 months is just so that we can ask them for another donation at least once a year. I
> would challenge your accountants to show you a local art museum, historical society, or
> SPCA that spreads membership out over 12 months. (maybe health clubs do this, but not
> museums).
>
> As far as exhibits go, we do capitalize them as assets and depreciate them over time.
> They have a cost and a value. I think you can be  conservative or liberal in assigning
> value (for example, what does staff time actually cost?) but be consistent.
> Mike
>
> ps -- of course I am not an accountant, don't work for the IRS, will not accompany you in
> front of your board, yadda yadda yadda.
> *********************************************************
> Michael Katz,  Director of Marketing and Development, Sciencenter
>    Ithaca, N.Y.  (607)272-0600  Ext 18.   http://www.sciencenterexhibits.org
>
> The Sciencenter mission is to inspire people of all ages and
> backgrounds to discover the excitement of science through
> programs and exhibits that promote learning through interaction.
>
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