LII Contributions - Gifts in Kind: Set Up and Reporting (2-54)

Tangible Gifts other than money are called Gifts in Kind and may be handled in a special way

Issue —

A donor gives your organization something tangible other than money (property, equipment, stocks, etc.), and wants to see that reflected in the year-end statement issued by your organization. In some cases, the donor wants to see this gift credited towards a pledge.

However, the IRS does not allow the receiving organization to set a value on the gift. Therefore, we recommend that you provide the donor with a letter describing the gift rather than making any entry within Logos II. If the donor is not satisfied with this, or if your organization wants to see an approximate value for the gift reflected in some reports (without impacting the Bank Account in General Ledger), consider the following approach.

Method —

1. In the Manage Funds routine, create a Non-Deductible Sub-Fund, giving it the same name as the Regular fund, adding “Gifts in Kind” or “Estimated Value” or other text to distinguish it.

2. If linked to Logos Accounting, enter the same GL Asset Account number in both the Income Account # and Checking Account # fields for this new Sub Fund. (You may want to create an Asset account in General Ledger just for this purpose. This account will show activity, but will always have a $0.00 balance as the debit and credit entries from Logos II will offset each other.)

3. If the Regular fund in question is defined as a Pledge Account, mark the Pledge Account check box for this Non-Deductible Sub-Fund, entering the same Starting and Ending Dates as for the Regular fund.

4. If the donor has made a pledge to the Regular fund, open the Pledges routine and locate that donor’s pledge record.

  • If the donor has made no cash contributions towards the pledge and the Gift in Kind is intended to fulfill the complete pledged obligation, on the Donor Summary screen, highlight the donor in the grid and select the Delete Donor button to clear out the original pledge.
  • If the donor has made cash contributions towards the pledge or if the Gift in Kind is intended to only partially fulfill the pledge obligation, on the Donor Summary screen, highlight the donor in the grid and click the Select button. Then either Delete any Installments that the donor will not be making due to the Gift in Kind or select the Clear All button and re-enter the pledge based on the difference between the estimated value of the Gift in Kind and the total pledge amount.
  • Return to the opening Pledge Summary screen and select the Non-Deductible Sub Fund. Enter a New Pledge for the donor for the estimated value of the gift, setting the Frequency to Life of Pledge. You may enter a brief description of the gift in the Comment field. (You can enter the estimated value of the gift as an Initial Deposit > 1st Payment, creating a transaction in Enter Contributions, but this will not define a Comment for that item.) Click the Calculate button and then close the routine.

5.  In the Enter Contributions routine, if you did not use the Initial Deposit option in the Pledges routine, enter a donation to the Non-Deductible Sub Fund for the estimated value of the gift. If you did define an Initial Deposit, select the Edit Batch button and then select the donor. In either case, enter the same description in the Comment field here as was added in the Pledge record. After verifying the entry, Post the batch.

Report Results —

Most Contributions reports do not print revenue for Non-Deductible funds. In order to print the Gifts in

Kind estimated entries on such reports, first go to Manage Funds and select the Change Fund Type button to temporarily reset the Non-Deductible Sub Fund to Regular. After printing the report(s), reset the Sub

Fund back to Non Deductible.

Donor Lists –

Donor List by Fund has an option to Summarize Sub-Funds. To use this feature, the Non-Deductible Sub

Fund must be temporarily set to Regular. The report will then show the combined Pledge and Giving amount.

Comparative prints two funds side by side and does print revenue for a Non-Deductible fund.

Pledge Reports –

Pledge Analysis prints for one fund only and does not print revenue for a Non-Deductible fund.

Pledge History, Pledge Summary and Pledge Cash Flow Projection print for one fund only and do print revenue for a Non-Deductible fund.

Pledge Summary (Comparative) prints two funds side by side and does print revenue for a Non-Deductible fund.

Pledge YTD Summary Analysis prints for one fund only, showing only amounts pledged.

Pledge Donor Summary (printed from within the Pledges routine) prints for one fund only and does print revenue for a Non-Deductible fund.

Statements –

In order to show the Gifts in Kind item on a donor’s statement

1. Mark the Print $0.00 Statements check box on the initial screen if any such donors have not made any cash contributions within the Summary Date range.

2. On the second screen, mark the Print not deductible income check box. You can edit the text that prints with these items.

NOTE: If a pledge was defined for a Non Deductible fund, that entry will print in the Giving Summary section of the statement, showing the amount pledged, but with 0.00 in the Given column. The Gift in Kind estimated amount will print under the separate Non Tax Deductible Income header, along with the Comment entered for the contribution.

If you do not want Non Deductible items to print on other donors’ statements, make separate print runs, using Search Criteria to exclude those with Gifts in Kind from the main run, then selecting only them in the second run.

Individual Donor Record – Only the Comparative report prints Non-Deductible revenue.

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