The recognition of volunteer labor as non-cash revenue is dictated by FASB ASC 958-605-25-16, Contributed Services. This standard dictates that if the services (a) create or enhance non-financial assets or (b) require specialized skills, are performed by people with those skills, and would otherwise be purchased by the organization, that an amount should be recognized as non-cash revenue for those services. Many churches and non-profits rely on volunteers to operate their organizations and thus should consider whether or not the volunteer services constitute contributed services.
Recent Comments