Ask the Accounting Community

Good afternoon, 

I am working with a very small non-profit and trying to work thru the proper way to record and handle some services expenses. 

How are "In-Kind" donations handled on the non-profits 990/financials as well as how does the donor handle the donation on their tax return. Is there a 1099 as well as donation letter received? 

Thanks

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Cynthia Pepperman
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This article should help you out . . . https://hblcpa.com/kind-nonprofit-accounting-donations-property-services/

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William Quinn CBM, CSP, CPA, CGMA
Auburn WA
United States
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Original Message:
Sent: 07-13-2018 11:47 AM
From: Cynthia Pepperman
Subject: very small non profit - looking to confirm some facts

Good afternoon,

I am working with a very small non-profit and trying to work thru the proper way to record and handle some services expenses.

How are "In-Kind" donations handled on the non-profits 990/financials as well as how does the donor handle the donation on their tax return. Is there a 1099 as well as donation letter received?

Thanks

------------------------------
Cynthia Pepperman
------------------------------

Original Message------

Good afternoon, 

I am working with a very small non-profit and trying to work thru the proper way to record and handle some services expenses. 

How are "In-Kind" donations handled on the non-profits 990/financials as well as how does the donor handle the donation on their tax return. Is there a 1099 as well as donation letter received? 

Thanks

------------------------------
Cynthia Pepperman
------------------------------

Thank you

That does help a lot.

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Cynthia Pepperman
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Original Message:
Sent: 07-16-2018 02:09 PM
From: Kirby Bowser
Subject: very small non profit - looking to confirm some facts

Hi Cynthia, 

 

In-Kind donations of services are included on the 990 as Contributions on page 1, line 8, but are broken out in Section VIII, line 1g 'non cash contributions'. The non-profit must also list the donation as an expense which can, but does not have to, generate a 1099 depending on how the rules are set in the software.

Many donors will not provide an invoice for their services. These donors are not interested in the publicity of the donation and prefer not to have the extra accounting entries to list charitable contribution 'jobs'. It is not the non-profits responsibility to set a value. If no invoice is provided, no entries are made and the receipt can have no value. 

 

Kirby Bowser

Original Message------

Good afternoon,

I am working with a very small non-profit and trying to work thru the proper way to record and handle some services expenses.

How are "In-Kind" donations handled on the non-profits 990/financials as well as how does the donor handle the donation on their tax return. Is there a 1099 as well as donation letter received?

Thanks

------------------------------
Cynthia Pepperman
------------------------------