Revenue is realised from the sale of goods or services, through the use of capital or assets, or revenue arising from the contribution of an asset to a charity when certain conditions have been met during the ordinary activities of your charity.
Examples of revenue for a typical charity include:
- grants from government, foundations, private or any other sources
- donations, tithes, bequests or legacies
- fees for provision of services
- sale of goods
- inflows from fundraising activities or sponsorship
- interest earned on investments, dividends
- royalties and license fees
- in-kind donations (for example, volunteer time or goods).
Revenue is usually shown as the top line item in an income (profit and loss) statement. Charity size (small, medium or large) is determined through an organisation's total annual revenue for the reporting period. Revenue therefore plays a key role in determining a charity's financial reporting and other obligations.
For technical guidance please refer to the following Australian Accounting Standards: