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  • 1.  Gift in Kind - Gift Accounting Question

    Posted 01-29-2024 08:52 AM

    Hi - I have a question in regards to how other non-profits are recording gift-in-kind gifts. Our non-profit per direction from finance has advised these gifts are recorded in unrestricted which is inflating our budgeted expenses. I couldn't find CASE standards or GAAP Principle guidelines to state if someone gives a gift in kind (for example - bears for patients at a childrens hospital) would your organizations record in temp restricted for the dept it's supporting or to unrestricted? Appreciate your insight. 



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    Char Harner
    University Hospitals (Cleveland)
    Charlene.Harner@UHhospitals.org
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  • 2.  RE: Gift in Kind - Gift Accounting Question

    Posted 01-30-2024 01:45 PM
    Hi Char,

    An in-kind gift can be restricted or unrestricted, just like a cash gift. It depends on the donor's intent. If an in-kind gift is received with no expression of donor intent, it must be recorded as unrestricted though - only the donor may restrict a gift. A nonprofit can designate a gift for a specific purpose, but it cannot legally restrict the gift.

    I'm not certain how recording a gift as unrestricted is inflating your budgeted expenses though. Can you explain which expenses you're referring to, and how they're impacted by the determination of restricted vs unrestricted? Note also that the 990 only has two categories now - there is no more 'temp restricted' and 'perm restricted'. Now net assets are either 'with donor restrictions' or 'without donor restrictions.'


    Thank you,
    Isaac Shalev
    Data Strategy Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:




    Original Message


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