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What is the best way to record In-Kind gifts?
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How do I record an in-kind gift?
In-kind gifts are contributions of goods or services, other than cash gifts.
Examples of in-kind gifts include:
Goods, like computers, software, furniture, and office equipment
Services, like meeting space, photocopy and mail services, and administrative/financial support
Expertise, like legal, tax, or business advice; marketing and web site development; and strategic planning
Answer:
The recommended process for handling in kind donations:
Some opt not to record in-kind gifts in General Ledger and instead record them in another place such as a Notepad or Contact for the Profile.
- Set up a special In-kind Gift Revenue account in the General Ledger.
- Enter a gift in the Gift Module and code the Gift with a Gift Type of Inkind.
- Describe the item or service in the Gift Comment field (which can be merged into an acknowledgement letter).
- Enter the value of the service or item in the Gift Amount field.
Gift of property or item
- Credit In-kind Gift Revenue account
- Debit fixed asset or other appropriate asset account
Gift of a service
- Credit In-kind Gift Revenue account
- Debit appropriate Expense account
Some opt not to record in-kind gifts in General Ledger and instead record them in another place such as a Notepad or Contact for the Profile.
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