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 video webinar with Q&A

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Conducted on Thursday, April 28, 2022

Recorded event now available

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Course Materials

This course will provide tax advisers 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 recording GIKs both conceptually and practically, including presentation and disclosures in Form 990.

Description

Nonprofits and their advisers 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, advisers must carefully adhere to specific requirements concerning GIKs. For example, does the organization have a consistent, reasonable, and well-defined process to assess and record the fair value of GIKs under U.S. GAAP? Has the organization adequately considered any services provided by an affiliate organization?

Answers surrounding the proper reporting of GIKs are not cut and dried. Because advisers 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 critical 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 and 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 essential questions:

  • What are the primary pitfalls in valuing in-kind gifts?
  • How can advisers 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

Brackett, Robert
Robert C. Brackett, CPA, ICVS, CVA, CGMA
Partner
Hanlin Moss Yi

Mr. Brackett's background includes 10 years of general business consulting, and he is active in professional...  |  Read More

Czerniawski, Magdalena
Magdalena M. Czerniawski, CPA, MBA
Managing Director
CBIZ Marks Paneth

Ms. Czerniawski is a member of the firm’s Nonprofit, Government & Healthcare Group. With over 15 years of...  |  Read More

Kanjamala, Joseph
Joseph J. Kanjamala, CPA, CGMA
Partner
CBIZ

Mr. Kanjamala is a Partner in the Nonprofit, Government & Healthcare Group at Marks Paneth LLP. His...  |  Read More

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