Non-Profit News Alert: Gifts-In-Kind

The Financial Accounting Standards Board (FASB) recently issued a Proposed Accounting Standards Update with the intention of increasing transparency in the reporting of non-financial contributions (or “gifts-in-kind”) received by non-profit organizations.

According to the FASB, this update would improve generally accepted accounting principles (GAAP) by providing new presentation and disclosure rules for gifts-in-kind, including how they are used and how they are valued.

Examples of such gifts-in-kind include land, buildings, vehicles, stock, professional services, and more. Non-profits who receive these types of gifts may have additional recordkeeping requirements and may want to contact their accountant regarding how these new proposals could impact their organization.

It is important to note that the changes are proposed, and the comment period is open until April 10, 2020.  If you would like to provide comments to the FASB or would like a complete copy of this proposed accounting update, please click here.

For more information on how PBO Advisory Group can assist with this or other accounting services, contact Rick Dahlseid, CPA at Rick@pboadvisory.com or (858) 935-4855.

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