The recommended process for handling in kind donations:
  1. Set up a special In-kind Gift Revenue account in the General Ledger.
  2. Enter a gift in the Gift Module and code the Gift with a Gift Type of Inkind.
  3. Describe the item or service in the Gift Comment field (which can be merged into an acknowledgement letter).
  4. Enter the value of the service or item in the Gift Amount field.

Suggested Journal Entries:  
Gift of property or item
  • Credit In-kind Gift Revenue account
  • Debit fixed asset or other appropriate asset account
Gift of a service
  • Credit In-kind Gift Revenue account
  • Debit appropriate Expense account

Note: The preceding information is general in nature and provided for high level informational purposes.  Contact the IRS for up-to-date regulations.  Your auditor should provide the final say on FASB stipulations.

Some opt not to record in-kind gifts in General Ledger and instead record them in another place such as a Notepad or Contact for the Profile.