issues with in-kind services
TRANSCRIPT
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• Attendees are in listen-only mode• This webinar is being recorded for future on-demand playback• Your participation represents acknowledgement that we are
recording• Tweet questions & comments to: #WelchNPO
Christa CaseyCPA, CAPartner + Director of the Not-for-Profit [email protected]
Garth Steele CPA, CAAudit + Indirect Tax [email protected]
Virginia Lackey CPA, CA, CIASenior [email protected]
• What Do We Mean by “In-Kind”?• Recent Trends• Valuation Issues• Accounting Recognition + Disclosure• Audit Implications• HST and Barter Transactions• Charitable Receipting
Donated Goods
Contributed Services
Volunteer Time (Including Board)
Sponsorships
• Funder contribution matching
• Meaningful reflection of operations
• Recognized value vs perceived value
• Volunteer Time (Including Board)• # of hours• Rate
• Donated Goods + Services• Fair Market Value
• Sponsorships• Given up vs. Received
Measured at Fair Value
Disclose- Accounting policy- Nature + amount recognized
Recognition is Optional if Criteria are Met- Fair value reasonably estimated- Used in the normal course of operations- Would have been purchased
Recognized as Contribution Revenue + Expense
Appropriate Audit Evidence
Occurrence
Fair Value
• A straight donation of goods or services for no consideration is not an issue• An exchange of goods or services for other goods or services can cause problems• Example: Supplier provides advertising services in exchange for tickets to an event• You must “break apart” the transaction and charge tax according to regular rules
• Donated goods• Auction items• Donated services
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Christa CaseyCPA, CAPartner + Director of the Not-for-Profit [email protected]
Garth Steele CPA, CAAudit + Indirect Tax [email protected]
Virginia Lackey CPA, CA, CIASenior [email protected]