When we receive a cash gift and also provide goods or services to the donor that are significantly less than the value of the gift, is a non-monetary exchange involved?
A. Not unless goods or services are also received by the university. Otherwise, the amount of the gift will be recorded only at the amount of cash received minus the value of goods or services provided (with the goods and services recorded as a non-gift.) The remainder of cash received will be recorded in the associated gift fund as “non-gift revenue.” For example: To help underwrite a conference, a unit receives a sponsorship gift for $10,000 that includes providing the sponsor approximately $2,000 in tickets to attend the conference. A gift transmittal with $8,000 gift and $2,000 non-gift would be sent to the Foundation. The following entries would be posted in the University gift fund: Dr. Cash $8,000 Cr. Gift Revenue $8,000 Dr. Cash $2,000 Cr. Non-Gift Revenue $2,000 Back to top Q. The University policy says that if either party to the exchange fails to fulfill the terms of the agreed exchange, the entire transaction should be penalized or cancelled. What if one party fails to fulf
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