Non-Profit inventory Value
My wife and I have a small non-profit where we receive donations of pet food and supplies and then redistribute them to people that are in financial hardships.
We are tracking the inflows and outflows of supplies, but since they are dontated, do we neeed to place an estimated value on our "inventory" as there is no money exchanged.
Thanks!
Taxwise 501(c) entity
Curious, is this a Quickbooks Software, Tax, or Ledger Accounting Inquiry?
IRS Sec. 501(c) Entity Taxation
Nonprofits earning less than $10,000 per year are not required to file a
federal tax return. Hence, inventory for federal tax returns is moot if your
"income" (distinguished from donations) does not exceed $10,000.
State law requirement, Nonprofit Members Requests for Accounting
Nonprofit corporations are required under state law to distribute, or make available, to
"members" of nonprofit corporations documents relating to accounting. If your state
statute requires review of nonprofit corporation Balance Sheet then your inventory will
be revealed thereon - If a member requests to inspect relevant entity documents.
If the corporation is operated by two persons, then, conceivably, you
are in a position to release the corporation from formal inventory reporting requirements.
The software is written by me (in-house). Most other accounting software and such are WAY too complicated for this, but was not sure f I needed to come up with an estimated value.
Thanks for the thourough answer!
Vareck
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