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| Re: In-kind contributions
Posted by Julie Rodda   on 1/26/2010, 11:48 am, in reply to "In-kind contributions"
VIP Poster
Karen,
This is always a fun subject! Truly, there is no uniformity amongst organizations for how this is reported.
My first question would be: Is your organization actually receiving/distributing the books, or are they going directly to the school?
If they are coming to you, then you could note them as a 'revenue received' and assign an in-kind face value for the books. I would not take the amount of time involved to value each book individually, but assign a generic value. Then you would show this very same value again under your expenses as a "program expense' (use the name of the program for supplying books). Your balance sheet will zero, which is what you want in-kind contributions to do. The important thing is to be able to show donors that without their help, this program would not happen. For outside funders (such as foundations) it helps show others are participating whether it be cash or in-kind donations.
If your accountant does not wish to include in-kind items, then you should take the alternate route of clearly stating in your annual report that $X dollars worth of books were received and then distributed to A Local School. Your donors want and need to know that their donations were valued, accepted and distributed as intended.
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Julie Rodda
http://www.roddaconsulting.com/Solutions for Non Profit Organizations
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