A gift-in-kind,for which the not-for-profit entity has no discretion on disposition,should be accounted for by the not-for-profit,nongovernmental entity as

Question

Quizplus · Accepted Answer

A gift-in-kind for which the not-for-profit entity has no discretion on disposition means that the entity is acting as an agent for the donor and therefore the transaction should be recorded as an agency transaction. The not-for-profit entity only acts as a conduit, passing the gift-in-kind to the intended recipient. It does not have control over the gift and, therefore, cannot recognize it as a contribution or an exchange transaction. A conditional promise to give is a commitment made by a donor to give a gift, but it has not yet been received.

A Gift-In-Kind,for Which the Not-For-Profit Entity Has No Discretion on Disposition,should