Contributions v. Exchange Transactions

When a non-profit receives grants, awards, membership dues or sponsorships, the organization needs to make a determination to the treat the transaction as an exchange transaction (earned revenue) or a contribution. In an exchange transaction, each party receives and sacrifices something of approximately equal value; whereas in a contribution transaction, transfers of assets are nonreciprocal and the value, if any, returned to the resource providers are incidental to potential public benefits.

Below are some tips to help determine whether a transaction should be treated as a contribution or as an exchange transaction.


8 Tips to Minimize Your Tax Preparation Fees

Our fee to complete your tax return is based on the time we expend and the level of experience necessary for preparation. Here are some steps you can take to minimize this fee:

Complete the Tax Organizer

Filling out the organizer before dropping off your tax information or coming in for a tax interview reduces the amount of time required to prepare your return. In particular, be sure to address the client information and questionnaire sections of the organizer as thoroughly and completely as you can.