The recognition of volunteer labor as non-cash revenue is dictated by FASB ASC 958-605-25-16, Contributed Services. This standard dictates that if the services (a) create or enhance non-financial assets or (b) require specialized skills, are performed by people with those skills, and would otherwise be purchased by the organization, that an amount should be recognized as non-cash revenue for those services. Many churches and non-profits rely on volunteers to operate their organizations and thus should consider whether or not the volunteer services constitute contributed services.
Do your volunteers’ hours constitute non-cash revenue?
This entry was posted on August 3, 2012 at 5:14 pm and is filed under Accounting,Tax.
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