Accounting for Non-Cash Contributions

Contributions can be made to a nonprofit in either cash or property. Non-cash contributions can be tangible or intangible. Tangible property could be vehicle donations, household items, land and buildings, etc. Intangible property could be stocks, bonds, copyrights, leased space, etc. Like cash, these items are recorded as contribution revenue when received. The amount and classification of the contributions are based on the item received. Generally revenue is recorded at the time the contribution or pledge is received. Revenue should be measured at fair value. Let’s look at an example where a vehicle was donated. At the time of the donation, the market value was determined to be $4,

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