Most all churches and nonprofit organizations have to deal with in-kind donations at some point. (In-kind donations are gifts of tangible and intangible personal property and donations of services.)

How and when to record those donations confuses many church/nonprofit bookkeepers. To add to the confusion...there are times when you should record the in-kind donation in your accounting books...BUT not issue a contribution receipt to the donor =(

 

For example, a nonprofit organization's landlord is feeling particularly generous and reduces your rent $500 a month. You could and probably should record the in-kind gift in your accounting records; BUT, you cannot issue a contribution receipt for the reduced rent! 

 

See how to record that in-kind gift and other in-kind donations in your accounting records and when you should and should NOT issue a contribution receipt for those gifts...

 

One of my readers posted a question regarding how to file his taxes with a W-2 with no salary/wage in Box 1 and the housing allowance reported in Box 14 AND how to correctly report that housing allowance on his tax return.

 

I also cautioned ministers doing their own taxes or letting someone prepare them that have no idea how to do ministers' tax returns as there can be ramifications YEARS now the road when you go to file for social security benefits and find out your tax preparer has been incorrectly filing your taxes and the SSA shows NOTHING paid in for all of those years (true story).

 

So please forgive the soapbox rant and see this post for how to correctly report your housing allowance on your personal tax return...