What is the journal entry to record a donation of services for a NFP entity?
When someone donates their services, they are really just donating their time. However, the key thing to note that is that donated services must be for skilled labor and not unskilled labor. For example, a lawyer, accountant, or healthcare professional would donate services in the form of their time to provide advice.
The professional would estimate what the fair-market-value of their time is worth (i.e. based on normal billing rate), and debit contributed asset and credit contribution revenue. The donated service could be restricted or unrestricted.
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