It is common for nonprofits to receive donations and contributions of nonfinancial assets, more commonly known as in-kind contributions. Typical examples of in-kind contributions a nonprofit may receive include but are not limited to:
Although nonprofits have been required to report the value of in-kind contributions in their financial statements for some time, there has not been consistency in the practice of this reporting. A new accounting standard took effect on June 30, 2022 intended to bring clarity and consistency to how in-kind contributions of nonfinancial assets are reported.
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