the silver guide to non-monetary transactions

2.2. Presentation in the financial statements

When an organization chooses to record contributions of goods and services, it must present the following information in its financial statements:

  • 1. The method used;
  • 2. The kind and amount of contributed goods and services recorded in the financial statements.

The contribution received in the form of goods and services must be evaluated at fair value at the time of the donation.

Notes disclosing contributions received in the form of donated goods and services other than volunteer labour:

Example 1 - Contribution of goods and services

Contribution of goods and services: Donated materials and services are recorded only if the fair value can be reasonably estimated at the date of donation (e.g., "In 20XX, donated materials and services in the amount of $XXX.XX have been recorded as revenue.").

Example 2 - Gift of artwork

In the year XX, contributions to the gallery’s collection included XX works of art. The contributed works were appraised independently at a fair market value of $XX. The items are then reported as donation revenue, with programming and acquisition costs expensed, at their fair market value, and are recognized when the deed of donation is signed and the appraisal completed.

Notes disclosing contributions received in the form of volunteer labour:

Example 3 - volunteer labour in financial statements

Volunteer labour as part of its operations, our organization relies on the services of many volunteers. These services are recognized in the organization’s revenues. Volunteer hours are compiled and recorded at an hourly rate equal to the average market rate for similar services.

See Pay scalesin the Toolkit