A gift in hand … Know the right way to report donations of services and gifts in kind

Description

Abstract: Donations of services and gifts in kind can be useful to an organization during tough economic times. But should they be booked in a nonprofit’s financial statements? And, if so, what amounts should be assigned? This article discusses two types of donated services a nonprofit can recognize — services creating or enhancing a nonfinancial asset, and those needing specialized skills — and also how to handle gifts in kind. A sidebar looks at the new Accounting Standards CodificationTM that replaces the Financial Accounting Standards Board’s patchwork of statements, interpretations and other guidance.