[GNC] How to post "In Kind" donations

[Michael or Penny Novack]

On 1/18/2025 5:33 PM, Ross Laver wrote:
> I am the treasurer of a fraternal organization.  I want to track "In Kind"
> donations for budgeting purposes.
> EXAMPLE:  someone purchases postage and does not want to be reimbursed.
> Postage is a legitimate expense.
> Please help!
> Ross

a) donor pays an expense of the organization and declines reimbursement 
(ex: the pay the postage for a mailing)

     Debit expense (postage) and credit donations (for that amount). IF 
you want, could have a child t account under donations to track these 
are different from ordinary unrestricted donations in money.

b) donor buys something for organization (ex stamps) and declines 
reimbursement. If the something would be immediately expensed (you don't 
have a inventory/asset for office supplies) then like above. But suppose 
the something would be a fixed asset (based on amount; the rule set by 
the organization*). Then debit an account or that asset (and expense as 
depreciated*.

Michael D Novack

* In the US, the IRS allows not for profit orgs (**) great freedom in 
these choices. Unlike a for profit business which the IRS would tell 
what has to be treated as a fixed asset and how fast can be depreciated 
(expensed)

** Whether or not a "tax deductible". The key point is that the 
organization pays no taxes and so makes no difference what rules the 
organization chooses. Could even expense big ticket long lasting things 
immediately. But this would be unwise as would distort the operations 
budget. Wild fluctuations in expenses need annotations. Much better to 
flatten that with reasonable fixed asset and depreciation rules. 
Especially important if you might be applying for grants and/or 
soliciting big donors.