31st World Press Freedom Day Conference in Santiago.
Issues With In-Kind Services
1.
2. Windows Mac Tablet
• Attendees are in listen-only mode
• This webinar is being recorded for future on-demand playback
• Your participation represents acknowledgement that we are
recording
• Tweet questions & comments to: #WelchNPO
3. Christa Casey
CPA, CA
Partner + Director of the
Not-for-Profit Sector
ccasey@welchllp.com
Garth Steele
CPA, CA
Audit + Indirect Tax Partner
gsteele@welchllp.com
Virginia Lackey
CPA, CA, CIA
Senior Manager
vlackey@welchllp.com
4. • What Do We Mean by “In-Kind”?
• Recent Trends
• Valuation Issues
• Accounting Recognition + Disclosure
• Audit Implications
• HST and Barter Transactions
• Charitable Receipting
6. • Funder contribution matching
• Meaningful reflection of operations
• Recognized value vs perceived value
7. • Volunteer Time (Including Board)
• # of hours
• Rate
• Donated Goods + Services
• Fair Market Value
• Sponsorships
• Given up vs. Received
8. Measured at Fair Value
Disclose
- Accounting policy
- Nature + amount recognized
Recognition is Optional if Criteria are Met
- Fair value reasonably estimated
- Used in the normal course of operations
- Would have been purchased
Recognized as Contribution Revenue + Expense
10. • A straight donation of goods or services for no consideration is not an issue
• An exchange of goods or services for other goods or services can cause problems
• Example: Supplier provides advertising services in exchange for tickets to an event
• You must “break apart” the transaction and charge tax according to regular rules
13. Christa Casey
CPA, CA
Partner + Director of the
Not-for-Profit Sector
ccasey@welchllp.com
Garth Steele
CPA, CA
Audit + Indirect Tax Partner
gsteele@welchllp.com
Virginia Lackey
CPA, CA, CIA
Senior Manager
vlackey@welchllp.com
Editor's Notes
Christa Casey, CPA, CA - Partner & Director of the Not-for-Profit Sector With over 20 years of experience, Christa Casey has become an expert in auditing not-for-profit organizations. In January 2010, Christa was appointed as Welch’s Director, Not-for-Profit Sector. Prior to this, Christa was a Quality Assurance Manager. Her previous and current positions require a high level of technical competence while staying informed of all developments in accounting and auditing standards.
Garth Steele, CPA, CA - Indirect Tax Partner
With over 20 years of experience as a Partner at Welch, Garth has an exhaustive list of Not-for-Profit audit experience. In addition to auditing NPOs, Garth’s forte is Commodity Taxes (GST, HST, PST) and Payroll Taxes (CPP, EI, EHT, WCB). For the past 20 years, Garth has been a tutorial leader and lecturer for the CPA Canada In-Depth GST Course, as well as an instructor for CPA Ontario’s annual Professional Development program.
Virginia Lackey, CPA, CA, CIA- Senior Manager + Director of Assurance Services
Virginia Lackey joined Welch LLP in 2006 after completing her Bachelor of Commerce degree. She received her Chartered Accountant designation in 2009 and her Certified Internal Auditor designation in 2010. Virginia is the Director of Assurance Services at Welch Toronto. She specializes in audit engagements in a variety NPO sectors and the public sector.
We are a charity that runs a training course which we are discontinuing. We have some left over supplies that we are donating to another organization that puts on a similar course. In exchange, they are advertising for us a new course that we are offering that they don’t offer. Do we have to collect HST on anything?