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  • 1.  Gift In Kind - recording (to record in gifts or not)

    Posted 9 days ago

    Hello everyone,

    Our institution has been inconsistent over the years when it comes to recording gifts-in-kind.  We don't receive them often, that said of course now it is becoming more frequent and I feel we need to reign in our practice.

    Do you record the gift-in-kind as a $0 gift and then include the item name in the gift reference?  Or is it better to record the gift-in-kind somewhere else?  Our database is RENXT and we do have a gift type gift-in-kind.  I'm inclined to record the gift as a $0 gift so we won't throw off any established reporting, but still have a way to systematically pull a list of a donor's gift-in-kinds.  

    Any other ideas or best practices out there?  

    Thanks,

    Molly



    ------------------------------
    Molly Kaszuba

    Executive Director of Advancement Operations
    New York Law School
    molly.kaszuba@nyls.edu
    ------------------------------


  • 2.  RE: Gift In Kind - recording (to record in gifts or not)

    Posted 9 days ago
    You should record them at their fair market value and include those dollars in your official fundraising reports. This is per CASE. Also per CASE and standard practices, these should be reported as a separate line item. Only when you lack verification of the value should you enter it as $0.

    However, using your GIK gift type flag, you will want to suppress the amount from all receipts and from your general ledger feed.

    There are some in-kind donations that you never count, including services and partial interest. However, soft-credit is sometimes appropriate for those.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Gift In Kind - recording (to record in gifts or not)

    Posted 9 days ago

    Thanks John! In one situation I have the appraised values, but only from IRS Form 8283.  I don't have the actual appraisal.  My gift officer is hesitant to reach back out to the donor to obtain the formal appraisal.  Is there a risk for us to use the figures from the 8283 form, or should we push back and get the formal appraisal?  



    ------------------------------
    Molly Kaszuba

    Executive Director of Advancement Operations
    New York Law School
    molly.kaszuba@nyls.edu
    ------------------------------

    Original Message


  • 4.  RE: Gift In Kind - recording (to record in gifts or not)

    Posted 9 days ago
    There is no risk at all. In fact, you do not have to ask for an 8283 or an appraisal - although having those are nice. Remember, these values are for counting purposes, not anything legal.

    Many donors do not file 8283s even when the value is $5,000+. And they certainly do not have to give you an appraisal. That's an IRS requirement and only if the donor wants to claim a deduction.

    When it comes to real estate, you can rely on public information such as tax records. Other forms of in-kind donations can easily have values estimated using sales searches. I've done that a ton, especially for equipment. Anyway, here's what CASE suggests on page 275 of the Standards:
    image.png

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 5.  RE: Gift In Kind - recording (to record in gifts or not)

    Posted 9 days ago

    On the GL side, we populate the distribution grid for Gift-in-Kind gift types to debit an expense and credit contribution, so the net is zero, but the GIK hits your GL.

     

    Jodi

     

    Jodi R. Collins, CPA

    Assistant VP for Foundations & CFO, Foundations

    Philanthropy and Alumni Engagement

    AUGUSTA UNIVERSITY

    1120 15th Street, HS-3200

    Augusta, GA 30912

    Phone: 706-721-7343

    augusta.edu

    Augusta University

     




    Original Message


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