Donated Services

Donated services received by a not-for-profit organization are generally not recorded because of the difficulty in placing a monetary value on donated services (and the absence of control over them). However, donated services are recorded as contribution revenue and expense at fair value if the services meet the following criteria: They create or enhance a nonfinancial asset (land, buildings, inventory, etc.) or they require specialized skills that the provider possesses and would otherwise have been purchased by the organization (attorney, accountant, doctor services, etc.).