Donors often fund equipment: laptops, vehicles, generators, pumps, furniture. When the project ends, the question is no longer "what did it cost?" but "where is it now, who has it, and what is it worth?" An NGO that cannot answer that has a problem at audit and with the donor. This guide explains how to keep a fixed asset register that stands up to both.
The rules for donor-funded assets differ between donors and agreements. Read your agreement and confirm the treatment with your auditor.
Why NGO assets need more care than business assets
In a business, an asset belongs to the company. In an NGO, an asset bought with a grant often has conditions attached: it may belong to the donor until the project closes, it may have to be used only for the project, or it may have to be transferred to a partner or returned. Your register has to carry that information.
What a good register records for every asset
| Field | Why it matters |
|---|---|
| Asset tag number | A physical label you can find on the item |
| Description and serial number | To identify it in a count |
| Date of purchase and cost | The starting point for depreciation |
| Donor and project that funded it | To know who has a claim on it |
| Location and custodian | Where it is and who is responsible |
| Useful life and depreciation method | To work out the yearly charge |
| Condition | To plan replacement or disposal |
| Disposal details | Date, method, proceeds, approval |
Step by step
1. Tag it when it arrives
Put a numbered label on the asset the day it is received, and record it in the register the same day. An asset that is "in the store waiting for a tag" is an asset that goes missing.
2. Decide what counts as an asset
Set a minimum value. Below it, the item is an expense; above it, an asset. Write the rule down and apply it every time, otherwise the register fills with chairs and the laptops are missed.
3. Record the donor and project
Every asset should say which grant paid for it. This is the first thing a donor asks at close-out.
4. Depreciate it regularly
Depreciation spreads the cost over the asset's useful life. Choose the method and life for each category (for example, computers, vehicles, furniture) and apply it the same way every month. Ask your auditor which lives and methods they expect.
5. Record every movement
Assets move between offices, districts and people. Each transfer should be recorded with a date, the new location and the person who now looks after it. A register that shows where an asset was bought, not where it is now, is not much use.
6. Count them once a year
A physical verification, with the register in hand, finds missing, damaged and unrecorded items. Record the result and the action taken.
7. Dispose of them properly
When an asset is sold, donated, transferred to a partner or written off, record it with the approval, the date and any proceeds. Under many donor agreements the proceeds, or the asset itself, go back to the project or the donor. Do not simply delete the item.
Month-end checks
- Every purchase over the asset limit this month is in the register.
- Depreciation for the month has been posted.
- Transfers this month are recorded.
- Total cost and accumulated depreciation in the register agree with the ledger.
Common mistakes
- No donor on the asset. You cannot tell who owns what at project close.
- No tag. The first physical count becomes a treasure hunt.
- Depreciation by guesswork. Use fixed lives per category.
- Deleting disposed assets. Mark them disposed, with the approval.
- A register and a ledger that disagree. Reconcile them every month.
How OneAccounts handles it
With the Fixed assets add-on, OneAccounts keeps an asset register with import from a file, posts monthly depreciation, and records transfers between locations, sales and disposals. Because the register sits with the accounts, the asset cost and depreciation in the register come from the same entries as your balance sheet.
Check your donor agreement for any extra tracking it requires, such as a field for the grant that funded each asset, and ask us to show you how it would be recorded before you rely on it.
See NGO accounting software and the NGO audit preparation checklist.
Frequently asked questions
Who owns an asset bought with grant money?
It depends on the donor agreement. Some donors keep title until the project ends, others transfer it to the NGO or a partner. Read the agreement.
How often should we count our assets?
At least once a year, and again at project close-out.
Should small items be in the register?
Set a minimum value. Below it, record the item as an expense.
Do we depreciate donor-funded assets?
Usually yes, but treatments differ. Confirm the accounting policy with your auditor.
What do we do with assets when the project ends?
Follow the agreement: transfer, return, sell or keep. Record the decision and the approval.