Gift In Kind

Bernard Nemis · August 2022

Hello.

A donor is donating $20K worth of equipment he got from his employer, but he got it as a discount of $5K.

Can you confirm this is the correct entry? Thank you!

Hard Credit Employee $20K

Soft Credit Employer $15K

Dariel Dixon 2 · August 2022

@Bernard Nemis Why would you give the employer any credit at all? What the donor paid/received the gift for is a private transaction and should not have any bearing on your gift transaction.

JoAnn Strommen · August 2022

@Dariel Dixon
LOL - that's what I was thinking, too, but thought I was missing something.
Your GIK receipting would itemize the equipment, without $ value - at least that's policy/procedure for most orgs. How you record value/appraisal etc should be in your org's GIK acceptance policies.

Bernard Nemis · August 2022

@Dariel Dixon
Hi, Dariel.

Thank you! This is awesome. I appreciate it. ")

Barbara Kunkel · August 2022

@Bernard Nemis - Great question to ask- @JoAnn Strommen is correct. Your receipt to the donor (employee) only states an itemized description of the equipment with no value per the IRS regulation. It is up to your donor to provide proof of the value for tax purposes. How you record the value of the gift in kind is up to your organization's finance department, and acceptance policies may involve equipment depreciation. The employer has nothing to do with the actual donation.

Bernard Nemis · August 2022

@Barbara Kunkel
Thanks, Barbara. Sorry, I should have said it was a theoretical question. Context is that, in the past we did acknowledge the Employer. But only because we thought the Employee purchased $5K worth of items and the Employer matched it 1:3. The equipment came through them, but it was initiated by the employee's purchase of the items. We later found out it was not the case. Forgive me, but this was the confusing part. Just wanted to make sure I am not missing anything. We just entered the gift in the Employee's giving history and didn't SC the employer. ")

I do agree with JoAnn regarding the itemized documentation w/o valuation that goes with the acknowledgement letter. The amount though is for representation of the gift recorded in RE. But this is beside the point.

Gift In Kind

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