Subscriber Login
Join Now!
The subscriber’s version of the memorandum is much more detailed than the basic version, offering significantly more information each issue. You’ll have full access to recent back-issues and detailed memorandums on numerous tax and legal topics of vital importance to nonprofit organizations and churches. Click here to sign-up!
What is the difference between a charitable contribution and an exchange transaction
Nonprofit and Church Legal Trends - Free Edition - March April 2009 (free edition)
What is the difference between a charitable contribution and an exchange transaction, and why is this difference important?
What is an exchange transaction? Exchange transactions are defined as:
“...transfers of assets that are in substance purchases of goods or services..."in which each party receives and sacrifices commensurate value. (FASB 116 paragraph 3).The rule further clarifies exchange transactions as: “...reciprocal transfers in which each party receives and sacrifices approximately equal value...” (FASB 116 paragraph 48).
| < Prev | Next > |
|---|