In-Kind Contributions: Accounting for Nonprofits

Determining Optimal Classification and Valuation of Gifts and Services, Appropriate Timing of Recording

Recording of a 110-minute CPE webinar with Q&A


Conducted on Wednesday, March 9, 2016

Recorded event now available

or call 1-800-926-7926
Program Materials

This webinar will provide tax advisors to exempt organizations with a review of the material terms of accounting standards, tax rules and guidance for gift-in-kind (GIK) donations to nonprofits. The panel will explore challenges that arise in the actual recording of GIKs both conceptually and practically, including presentation and disclosures in Form 990.

Description

Nonprofits and their advisors must be familiar and skilled with the principles and practical accounting for GIK donations. GIKs present accounting challenges due to the combination of inconsistencies among GAAP and tax recognition requirements in determining the value of the contributed property.

To avoid accounting inconsistencies or misstatements, advisors must carefully adhere to certain key requirements with respect to GIKs. For example, does the organization have a consistent, reasonable and well defined process to assess and record the fair value of GIKs in accordance with U.S. GAAP? Has the organization properly considered any services provided by an affiliate organization?

Answers surrounding the proper reporting of GIKs are not cut and dry. Because advisors may reach vastly different conclusions about accounting for and recording them, perspectives from experienced peers on applying the standards to these contributions are invaluable.

Listen as our experienced panel outlines the material terms of the applicable accounting standards and guidance for GIKs, offers their own tried and true approaches to recording GIKs, and discusses key best practices in this vital area of nonprofit accounting.

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Outline

  1. FASB pronouncements on GIKs
    1. Requirements to recognize contributed services
    2. Services received from personnel of an affiliate
    3. Requirements to recognize contributed goods
    4. International issues
    5. Typical issues surrounding GIKs
    6. Practical tips
  2. Noncash contributions: tax considerations
    1. Reporting on Form 990
    2. Donor reporting & acknowledgment
    3. GAAP/tax differences and reconciliation
    4. Special considerations
      1. Vehicle donation programs
      2. Conservation easements
      3. Trade or business income and UBIT
  3. Valuation issues
    1. Difference between donor’s and donee’s value
    2. GAAP standards: fair value/exit price
    3. Tax standards: fair market value

Benefits

The panel will review these and other key questions:

  • When is a “gift-in-kind” not a GIK?
  • What are the key pitfalls in valuing in-kind gifts?
  • How can advisors tackle valuation challenges?
  • When are donated services reported under GAAP?
  • How are GIKs reported on Form 990?
  • What might raise concerns with the IRS?
  • What are the recipient organization’s responsibilities to its donors?
  • What are the best solutions to the critical challenges of tracking GIKs?

Faculty

Robert C. Brackett
Robert C. Brackett

President
Crandall & Brackett

Mr. Brackett has served as president of Crandall & Brackett, Ltd. since 1991. His background includes 10 years of...  |  Read More

Bruce Levi, CPA
Bruce Levi, CPA

Partner
Lane Gorman Trubitt

Mr. Levi focuses his practice on audit and tax services with his firm's larger business clients which have...  |  Read More

Ordeneaux, Renee
Renee Ordeneaux, CPA

Partner
Armanino

Ms. Ordeneaux has more than 25 years of experience in public accounting and industry―including serving as the CFO...  |  Read More

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