In-Kind or Non Cash Donations

Overview:

Set up a Bank Account called In Kind Donations making the starting bank balance $0.00. When people donate goods or services, make a Deposit to the In Kind Donations bank account. When you use these services, make a withdrawal from the In Kind Donations bank account. You will always want the balance in this account to be $0.00.

Step-by-step instructions:

Start by setting up a new bank account.

  • Click on the Banking icon.

  • Click Add Bank Account.
  • Enter the name of the Bank Account in the field labeled “Name”. We suggestion something like “In Kind Donations”.
  • Enter $0 in the field for the bank statement opening balance as of the first day of your financial year.
  • Click Save.

Next you’ll need to add a category in your budget.

  • Click on the Budget icon.

  • Add a category called “Donations – In Kind”.

When you receive a donation of goods or services, record this as a Deposit to the “In Kind Donations” bank account and allocate it to the “Donations – In Kind” Category. It is important to allocate all these donations to one category to make it easy to see how much you received in total (and to accurately report this on your 990/EZ).

If you go to the Home Page now, you will see that your In Kind Donations bank account has a positive balance in it.

When the donation has been “spent” e.g. the soda pop for the Sock Hop was sold, or the tax return was completed, or the auction item was auctioned, record this as a withdrawal from the “In Kind Donations” bank account. This time allocate the amount to the actual Category that you used it for e.g. Sock Hop / Tax Preparation / Auction, etc.

If you go to the Home Page or look at the Bank Register now, you will see that your “In Kind Donations bank account has a $0.00 balance in it.

Note: Any deposits and/or withdrawals you enter will reflect in your Treasurer’s Report. The IRS considers this income, even if it isn’t cash, and so does MoneyMinder.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.