Tips for valuing donated professional services

The IRS divides donated services into two classes:

• GAAP Services - These are for professional services or discounted services donated to nonprofit organizations that may be tax deductible.
  
  
• Non-GAAP Services - These are services donated to organizations that are not tax deductible but are still recorded as donations and reported to the IRS.  Typically, most volunteer time falls under non-GAAP services.
  
  

Foundations and grant makers often are interested in seeing both donated GAAP and non-GAAP hours so it is important to log your in-kind donated professional service hours properly to determine whether or not they are tax deductible.