Does your organization have Gift-in-Kind revenue from a Public Service Announcement campaign?
As you probably know, Financial Accounting Standard Board (FASB) ASC Topic 820 requires all not-for-profit organizations to recognize the Gift-in-Kind fair market value of air time donated by broadcast stations that aired their PSAs for free. This is generally not easy to do. That’s because broadcast stations rarely provide organizations with the information needed to do this.
That is why many nonprofit organizations turn to Connect360. We solve this problem by providing GAAP-compliant, Level 2 fair market valuations and we do it by valuing the thousands of individual airings that make-up a typical PSA campaign, using our proprietary access to non-public, broadcast industry data. It is something we have done over the past five years for over 250 Public Service Announcement campaigns.
When done correctly, this also has an interesting side-benefit most organizations may not be aware of. It increases the “financial efficiency” score rating agencies like the Better Business Bureau and GuideStar assign to organizations – at times significantly. This score is a key metric many donors and potential donors rely on in making donation decisions. It increases because the additional Gift-in-Kind revenue derived from the PSA increases the percentage of total revenue shown on financial statements as being used for program-related purposes (as opposed to fundraising and overhead).
If you would like to learn more about this, please contact Steve Edelman at 212-624-9181, firstname.lastname@example.org.