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Gift in Kind
I’m wondering whether any of you take materiality into consideration when determining whether to record Gifts‑in‑Kind in your general ledger for financial statement presentation purposes.
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5 Replies
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My rule of thumb is if it’s something the nonprofit would otherwise have needed to purchase, it should be recorded. Whether that’s 1000 pounds of potatoes for a food shelf or a pound of coffee for the break room.
What specifically are you on the fence about?
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They are GIK for the use in events and the Foundation hasn’t historically recorded them.
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Great question, Angelica. We absolutely use materiality as our guide. If that donated software or pro bono service would matter to a board member or donor, it goes in. If not, we track it internally and move on. Saves so much headache.
What is your threshold for deciding what is “material” enough?
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Thank you!
