April 11, 2016
Question
Scott Dermont (IA)
Hi All,
I have a question about how to report income from Friends group. If the group gives the money directly, there is no problem. But how would you report it if the library makes the request to the Friends, and the Friends cut the check directly for the item? I think it if was any other group, I would not count it as income as it seems like we would be counting the value of a gift. But I know Friends are handled a bit differently because their sole purpose is supporting the library. What do you think?
Thank you!
SDC Comments
Stacey Malek (TX)
If the Friends purchase on behalf of the library, then neither the expenditure nor the revenue is reported. We do not treat the Friends any differently from any other outside organization. We tell the library that the revenue must hit their budget, in order to be reported.
Hope that helps.
Lisa Dale (CA)
In California, we have asked jurisdictions to report expenditures that Friends pay for directly to support library operations (such as utilities, etc).
Terry Blauvelt (MO)
Missouri treats gifts in kind the same way Texas does.
Jamie McCanless (WI)
If the friends group buys a requested item and gives it to the library, I think that’s a gift and the value of it cannot be reported as either income or expenditure. If the friends group cuts a check for an item at the library’s request and gives the check to the library, that is a monetary gift/donation that our libraries would include in All Other Operating Income and as an operating expenditure (or, potentially, a capital expenditure).
Wisconsin public libraries can report municipal expenditures made “on behalf of” the library, such as utility payments or staff benefits, but I would hesitate to stretch that to friends groups.
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