So, when working on many projects, often times I find it important to account for costs paid for by someone else. Why? Because if a cost required for a particular project is being paid for by someone else in the present, there is a risk that funding source may no longer be available in the future, and you’ll have to find an alternate funding source. So, I’m trying to figure out how to measure that in my accounting equations. “Economic externalities” is another way of stating a similar thing. Surely, there’s an official way of doing this in the accounting practice, isn’t there?
“Sponsorship” is the word that comes to my mind. So, what does Wikipedia ahve to say about this? Well, it is almost entirely focused on the idea of sponsorship as a means of brand promotion in return.
20191225/https://en.wikipedia.org/wiki/Sponsor_(commercial)
Well… when I think about this, yeah, indeed this is a common trend even when it is not overt and explicit. The jobs you work that build your resume, are, in essence, a form of “sponsorship” by you. You sponsor work at a company in exchange for the ability to put your work experience on your resume.
Also, this extends to corporate donations. Because companies like to publicize donations in a Corporate Social Responsibility (CSR) newsletter or the like, they are not, in fact, pure donations of their own right, but it is in fact sponsorship. Only when people truly want to give without expeect for any reward or recognition can it be recognized as a true donation and only that.