Answer:-
A reasonable capitalization threshold for nonprofit organizations typically ranges from $1,000 to $5,000, depending on the organization's size, financial policies, and funding sources. This threshold determines when a purchase, like equipment or furniture, is classified as a capital asset rather than an expense. Smaller nonprofits might set a lower threshold, while larger ones may opt for a higher amount to simplify accounting. The goal is to balance financial accuracy with practical record-keeping. Nonprofits should align their threshold with Generally Accepted Accounting Principles (GAAP) and IRS guidelines while ensuring consistency in financial reporting and asset management.
Do you need an answer to a question different from the above?
