Menu - Accounting
Aug 4, 2023 06:54 AM
In the given example, the building or property needs $50,000 for major roof renovations, but the current finances of the property do not allow for it.
To address this issue, a fundraising campaign is organized. This can be achieved by asking the property members to contribute by paying a portion of the required amount each month. As members make their contributions, the collected funds accumulate until the total amount required for the project (the "goal") is reached.
Once the total amount of the "goal" is reached, the fundraising campaign ends, and the monthly contributions stop. At this stage, the necessary funds for the roof renovation project are available, and the renovations can be carried out in the future.
Fundraising is an effective way for properties or organizations to finance costly projects by spreading the costs among the members and ensuring that the necessary funds are available before commencing the work.