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| In-kind service tracking
Posted by carl  on 5/15/2008, 11:03 am
VIP Poster
This is in response to Julie Rodda's post regarding tracking in-kind contributions.
In my experience, most nonprofits do not track certain in-kind contributions: volunteer hours for professional tasks like bookkeeping, auditing, volunteer coordinating, etc. They don't track in-kind for audit or reports to the board, because financial statements track money, assets, and financial conditions. To explain services, many nonprofits make a note at the bottom of the page stating, "the above does not include x hours of volunteer professional services..." or something to that effect.
Goods and materials, however, are a different thing. In the case of your nonprofit, the purchase of food is a very real and common expense. One way you might try to track the in-kind of food is by off-setting in-kind contributions with cost-of-goods sold. So your income statement will have a "sales figure" (i.e. the value of the in-kind contribution) and right under it is a subtraction for the cost-of-goods sold. These should tie out pretty closely since your org can't resell the contribution of food. In this scenario, you are portraying both real values, i.e. the cost of meals and the value of the in-kind contribution. I don't know if this will pass an auditor's test, but I can't see why it wouldn't.
Hope this helps,
Carl
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Link: Richardson Development
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