Gifts in Kind
A gift of property includes not only cash but also gifts of non-cash property. Gifts in kind include clothing, artwork, furniture, medicine, building materials, appliances, real estate and publicly listed securities. A Gift in Kind does not include services rendered or professional fees.
If the church chooses to accept a gift in kind, it is responsible to establish the value of the gift for receipting purposes. If the value of the gift cannot be established, a receipt cannot be issued.
Once the gift has been accepted, an entry must be made in the accounting system to account for the gift, and subsequent receipt. An account should be created in the Receipted Income section of the Confluent Accounting System. It is recommended that the church be invoiced and purchase the item; the giver can then issue a cheque back to the church as a donation for tax receipting purposes.
Questions to ask before accepting Gifts in Kind:
Records must be kept to show how the value was determined if CRA requires proof:
The following items must be shown on the official receipt: