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Board OntologyFinance

In-Kind Contributions

Donated goods and donated professional services recognized at fair value in the period — pro-bono legal and accounting work, donated space, donated equipment or supplies. Recognized only where the service would otherwise have been purchased and requires specialised skill; ordinary volunteer time is NOT recognized, however valuable it is. — Finance KPI anchored to FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.

Rogue ID: finance.np_in_kind_contributions Type: Currency Domain: Finance

Definition

Donated goods and donated professional services recognized at fair value in the period — pro-bono legal and accounting work, donated space, donated equipment or supplies. Recognized only where the service would otherwise have been purchased and requires specialised skill; ordinary volunteer time is NOT recognized, however valuable it is.

Formula

Fair value of donated goods and of donated specialised services recognized in the period. Offset by an equal expense in the function that consumed them, so the change in net assets is unaffected.

Why it matters

Makes the true cost of running the organisation visible, including the parts someone is giving away — which matters when that donor stops.

How to interpret

Because it is offset by an equal expense, a large in-kind line inflates both sides of the statement; read expense ratios with it in mind.

  • finance.np_total_support_revenue
  • finance.np_total_functional_expenses

Source

FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities · section: ASC 958-605 (contributed services and nonfinancial assets) — published 2016-08-01.

Why does this cite FASB ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities? Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.

Stage relevance

Company stagePriority
Pre-SeedCore
SeedCore
Series ACore
Series BCore
Series C+Core
PublicCore

Suggested for stages: Pre-Seed, Seed, Series A, Series B, Series C+, Public.

Default owning functions

  • Finance

Machine-readable

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