Nonprofit Donations to Other Nonprofits

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#1
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Need assistance, have worked with non-profits for years but this is first time I have done work for one that donated cash and property to other non-profits rather than just utilizing everything for their own needs. A desk listed as a fixed asset (with depreciation) was donated with a book loss, and $7500 cash was distributed to a variety of non-profits with similar purposes.

Clearly, the Board of Directors viewed the $7500 cash distributions as program expenses. I'm fine with that, it is recorded as such just as United Way does and justified under the scope of their mission.

Where my actual confusion comes in is recording the loss on the donated desk. The nonprofit purchased the desk several years ago for about $1800, and decided to donate last year after depreciation of about $1350. It is not a cash transaction. I cannot seem to find any guidance on this, and whether the loss appears directly on the Statement of Financial Position with a line item under net assets, or on the Statement of Activities as a program expense.

Thoughts?
 

#2
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I usually record the net book value of the asset as a donation and show no gain/loss for asset disposition.
~Captcook
 

#3
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CaptCook wrote:I usually record the net book value of the asset as a donation and show no gain/loss for asset disposition.


You do this for a nonprofit donating to another nonprofit? I agree in my case the net book value approximates the FMV, but I am questioning if it should appear on statement of activities or not. Overthinking, perhaps.
 

#4
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CornerstoneCPA wrote:Overthinking, perhaps.


Agree
~Captcook
 


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