November 2023
UTC/GMT - please check for your own time zone
13:00 - 14:00

ED2 - Donations in-kind

The free online event held in English with resources in French and Spanish.

This webinar covered the proposals in relation to Donations in-kind that are set out in the International Non-Profit Accounting Guidance Exposure Draft 2 (INPAG ED2).

The webinar took the following questions and comments from participants:

Q1: If an NPO pays something towards the cost of an item or service, but not the full value, presumably it is necessary to ‘top up’ the value of the item and recognize the difference as a donation in kind. In Australia there is a ‘filter’ to determine when that is necessary – there must be a ‘significant difference’ between the amount paid by the NPO and the fair value of the item received. Is there any similar type of ‘filter’ in INPAG?

Q2: In some jurisdictions, the recognition of services in-kind is based on the question ‘would the NPO have had to purchase it if it hadn’t been donated?’. Why has INPAG instead chosen to go for mission-critical vs not mission-critical? It seems that admin services like audit /legal are not deemed to be mission-critical – why is that?

Q3: In our non-profit context – what does it mean for a donation in-kind to be valued at ‘fair value’?

Q4: INPAG has a permitted exception that items received for the NPO’s own use don’t have to be recognized as revenue until they are used. What happens in the meantime – is there a need to recognize an asset and liability?

Q5: If an NPO receives a an item at a subsidized cost, does it have to recognize the difference. For example, if the NPO contributes $1,000 towards the cost of a laptop worth $2,100. If the asset were capitalized, is it the full $2,100 that would be depreciated?

Q6: Sometimes insurance firms are reluctant to insure donated assets if the NPO can’t show documentary proof of the asset’s value. Can INPAG help address that issue at all?

Q7: If an item has been received at the balance sheet date, but not (yet) recognized – because of one of the permitted exemptions – is there a requirement to make disclosures?

Q8: Are NPOs required to follow the exemptions, or can they recognize donated items if they choose to?

Q9: How should an NPO treat donor-provided assets, eg a vehicle is owned and registered in the name of the donor, but made available for use by the NPO for a project that the donor is funding? Should the asset be recognized as PPE, or do you recognize the service in kind for the fair value of renting a similar vehicle?

Q10: If a vehicle is made available for the NPOs use, but it’s final outcome at the end of the project is uncertain – it might end up being given to the NPO, or not. How should the accounting be done in that case?

Q11: Why are the permitted exceptions only applicable to Enforceable Grant Arrangements (EGAs) and not Other Funding Arrangements (OFAs)?

Watch the video below

Download the slide deck here

Recommended videos

Explainer videos for Donations in-kind in English, Spanish and French


INPAG ED2 Overview

To share your voice on this or other topics in Exposure Draft 2, please visit