Accounting for YGG In-Kind Donation Revenue

It is generally understood that in-kind donations made to NPOs may be accounted for as revenue but the process and rules to do so can be cumbersome. In order to help our Non-Profit partners account for the in-kind donation revenue processed through our website and the YouGiveGoods Foundation, we’ve collected the following information to aid in the process.

  • Tax Exempt Organizations may account for non-cash contributions as revenue under the IRS Form 990 (annual income tax form), including Schedule M, if applicable.

  • The U.S. Generally Accepted Accounting Principles (GAAP) state that non-profit organizations are required to use fair value to account for the value of in-kind donations. Accounting standard FASB ASC Topic 820, Fair Value Measurement, addresses the value of in-kind donations.

  • The fair market value of items purchased in a YGG Charity Drive is the purchase price the donor paid for that item.

  • The retail value/purchase price of the items donated to the YouGiveGoods Foundation and ultimately delivered to the receiving charity represent an appropriate method of valuation to record income from the in-kind donations for a non-profit organization under the IRS Form 990 and the GAAP FASB ASC Topic 820 accounting standard.

** IMPORTANT NOTE: The above information is for reference only. You should consider this information in consultation with your legal, tax, financial and other advisers, as appropriate.**