[GNC] Non-cash charity contributions

[David Cousens]

Art, Kevin

Any donation to charity would be recorded if it is tax deductible against an
expense account on one end of the transaction and against an asset or
liability account on the other. If you use an income account then your
expense is offset against that specific income and you get no nett tax
benefit unless you made the income account non-taxable i.e. income not
reportable for tax purposes, however the items donated are items you have
already purchased so they are assets. 

You could create an pooled asset account for MiscellaneousHousehold assets
and give it some nominal value. E.g. If you have contents insurance on your
house, that might serve as a nominal value. Assigning the nominal value
could be an opening balance against equity. You could then increase the
asset any time you made a purchase of capital goods for the household and
use it as the target account for the other side of the donation transaction
to decrease the pooled assets. It involves some tracking of assets but not
on an individual basis.

David Cousens



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David Cousens
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