Sometimes groups receive donated items to use at events that need to be accounted for. Following are instructions for doing so in MoneyMinder.
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.
Start by setting up a new bank account. Click on the Banking icon:
Next, click Add Bank Account.
Give the Bank Account a “Name” and a starting balance. We suggested something like “In-Kind Donations” and a $0 starting balance.
Next, click on the Budget icon in the toolbar:
Add a category called “In-Kind Donations”.
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 “In-Kind Donations” 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).
Here is an example deposit:
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 auction item was raffled off), or the tax return was completed, etc. 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.