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  • 1.  Paintings Bequest

    Posted 25 days ago
    Several years ago, our organization received a bequest of an artist's complete body of work, with the understanding that the pieces would be sold and the resulting proceeds used to establish a scholarship. The bequest was never recorded when we received it. Now the paintings are being sold and my team wants to record the sale of these assets at their current FMV in our CRM as scholarship gifts. What is the appropriate way to handle these transactions?
    Many thanks. 


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    Bethany W
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  • 2.  RE: Paintings Bequest

    Posted 25 days ago
    Of course, the first issue to address is to determine why the realized bequest was not recorded initially. You will want a policy and protocol to ensure this does not happen again.

    Record only the FMV of the paintings (as a gift-in-kind or property gift) at the time they were given, with a note on the comment line indicating the original date of the gift. The funds realized should be deposited through the Business Office as miscellaneous revenue (or, if they prefer, "proceeds from sale"). It is up to your Business Office to determine whether to book each painting as an asset and then apply the increase or decrease in value from the sale as a gain or loss.

    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






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