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How to account for AdGrant donation in org books?

Badged Google Partner
# 1
Badged Google Partner

Hello all, 

 

A quick question for US based charities that have a Google Ad Grant.

 

How do you notate this in-kind donation in your financials? 

 

Thank you,
Mark

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Marked as Best Answer.
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Accepted by topic author markphallman
September 2015

Re: How to account for AdGrant donation in org books?

Top Contributor
# 2
Top Contributor
Hi Mark,
While not all nonprofits use it, QuickBooks does have a good step-by-step guide on reporting in-kind donations. You can find it at: http://support.quickbooks.intuit.com/support/articles/SLN44103

The reported amount would come from the billing tab within AdWords.

From an IRS standpoint - the reporting would likely be on Form 990 or on Form 990EZ According to http://www.irs.gov/instructions/i990ez/ch02.html
"Donations of services such as the value of donated advertising space, broadcast air time (including donated public service announcements), or discounts on services or donations of use of materials, equipment, or facilities, even though reporting donated services and facilities as items of revenue and expense is called for in certain circumstances by generally accepted accounting principles. The optional reporting of donated services and facilities is discussed in the instructions for Form 990, Part III." http://www.irs.gov/instructions/i990ez/ch02.html#d0e3051

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Marked as Best Answer.
Solution
Accepted by topic author markphallman
September 2015

Re: How to account for AdGrant donation in org books?

Top Contributor
# 2
Top Contributor
Hi Mark,
While not all nonprofits use it, QuickBooks does have a good step-by-step guide on reporting in-kind donations. You can find it at: http://support.quickbooks.intuit.com/support/articles/SLN44103

The reported amount would come from the billing tab within AdWords.

From an IRS standpoint - the reporting would likely be on Form 990 or on Form 990EZ According to http://www.irs.gov/instructions/i990ez/ch02.html
"Donations of services such as the value of donated advertising space, broadcast air time (including donated public service announcements), or discounts on services or donations of use of materials, equipment, or facilities, even though reporting donated services and facilities as items of revenue and expense is called for in certain circumstances by generally accepted accounting principles. The optional reporting of donated services and facilities is discussed in the instructions for Form 990, Part III." http://www.irs.gov/instructions/i990ez/ch02.html#d0e3051

Re: How to account for AdGrant donation in org books?

Badged Google Partner
# 3
Badged Google Partner
Hi Robert,

That is great information. I really appreciate your sending that over.

Best regards,

Mark

Re: How to account for AdGrant donation in org books?

Top Contributor
# 4
Top Contributor
Hi Mark,
Glad I could help you out. All the best.