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So what do I do with in-kind services (professional) and donated rent???
I have tried researching and it all seems to conflict. Are they recorded as revenue and expenses or not since it sounds like they aren't allowed on the 990 except within the narrative of programs. Or do they go in total revenue (Part I, line 8)?
We use QBO and I had them all mixed together in the In-Kind Donations which now seems incorrect. Thanks
Underlines are mine.
The 990 instructions it state:
Donated services or use of equipment, materials, or facilities.
The organization can report the amount of any donated services, or use of materials, equipment, or facilities it received or used in connection with a specific program service, on the lines for the narrative description of the appropriate program service. However, don't include these amounts in revenue, expenses, or grants reported on Part III, lines 4a–4e, even if prepared according to generally accepted accounting principles.
1. Contributed Use of Facilities, Utilities, and Other Long-Lived Assets
Nonprofits often receive free or discounted use of buildings, telephone or electric utilities, or other long-lived assets from the legal owner of the property. The value of the benefits received, in excess of any amounts paid, should be measured at fair value and the entire contribution should be recorded as revenue in the period the contribution is received or pledged.
I have tried researching and it all seems to conflict. Are they recorded as revenue and expenses or not since it sounds like they aren't allowed on the 990 except within the narrative of programs. Or do they go in total revenue (Part I, line 8)?
We use QBO and I had them all mixed together in the In-Kind Donations which now seems incorrect. Thanks
Underlines are mine.
The 990 instructions it state:
Donated services or use of equipment, materials, or facilities.
The organization can report the amount of any donated services, or use of materials, equipment, or facilities it received or used in connection with a specific program service, on the lines for the narrative description of the appropriate program service. However, don't include these amounts in revenue, expenses, or grants reported on Part III, lines 4a–4e, even if prepared according to generally accepted accounting principles.
1. Contributed Use of Facilities, Utilities, and Other Long-Lived Assets
Nonprofits often receive free or discounted use of buildings, telephone or electric utilities, or other long-lived assets from the legal owner of the property. The value of the benefits received, in excess of any amounts paid, should be measured at fair value and the entire contribution should be recorded as revenue in the period the contribution is received or pledged.