USA Board members contributions

[Vicente]

Hi,

Board members are making contributions for employees holiday gifts, as this is a not for profit, I'm wondering if this contributions need to be on our books as donations or should use only a pass through account?

 

[Drmdcpa]

Sounds like donations to me.

 

[bklynboy]

If they make them out of their own pocket its not a company expense. If they are asking to be reimbursed by company then its a operating cost I think. Donations I thought were just for the recipients of the charity and not the employees.

 

[Drmdcpa]

Employee gifts are standard company related payroll expense.

Nonprofit board members often pay for company expenses out of pocket. In such circumstances, the nonpro needs to record the income as well as the expenses.

 

[Nicole310796]

would fringe benefit apply to those contributions?