USA NonProfit: Question About Imputed Rent


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I work as an auditor for a nonprofit organization.

One of our grantees purchased a building solely with my organization's funds.
The grantee also receives funds from other sources.
These funds are allocated to pay a share of operating expenses such as utilities.
However, there is a dispute as to whether an allocation of these other funds should be made to pay imputed rent for the use of the building.

Our organization does not necessarily require the other funding sources to allocate any sort of imputed rent, but a CPA mentioned that under nonprofit GAAP, they would be required to pay imputed rent. I cannot find this information.

I am asking as a new hire who was told to find more information about this to report to my manager. I am satisfied that my organization does not require it, but wonder if there is something from GAAP I am missing.

Does anyone with nonprofit knowledge have any information about this? I'm happy to provide more information or clarification if needed.

Thanks in advance!
 
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bklynboy

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Not sure what the specific GAAP guidance is but at my firm we have a not for profit and we allocate a portion of the building premises they occupy as donated services since we do not charge them for any rent. Sounds like what you are terming imputed rent and the logic is that you are allowing them to occupy the space rent free and the value of such free service (the market rental rate) is what is being donated to the not for profit and needs to be recorded by them.
 

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