Charities with expenditure of less than $2m and that are required or elected to report under the Tier 3 reporting standard for charities are required to disclose donated assets – including goods and services provided by volunteers. The disclosures should be included in the ‘Notes to the Performance Report’ if they are considered significant to your charity (either in nature or financial value).
What are goods or services provided to the entity in kind?
Examples of in kind donations include:
- Goods like food, clothing, furniture and office equipment
- Provision of office space at no charge
- Professional services provided for free e.g. accounting, administrative support, audit, legal
- Volunteer services to assist with running events or concerts
How do I determine if a good or service provided to the entity in kind is significant?
What is considered significant for a small charity may not be significant for a larger charity. It is essential that judgement is used to determine what is significant. If including or excluding the information would change a reader’s understanding of the charity and its Performance Report, then we would recommend disclosure. If uncertain, don’t hesitate to ask.
Why do I need to report these transactions?
It will show the level of contribution and support the charity receives from its volunteers through donated goods or services.
How do I need to report these transactions?
You need to provide a clear description of any significant goods or services provided to the entity in kind, for example, free professional services. A dollar quantification may be provided as an optional disclosure.
If you would like further assistance regarding goods or services being provided in kind to your charity or any other not for profit reporting matter, please get in touch.