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Nonprofit Law/including volunteer service in financial statements


Would you please explain to me what kind of volunteer services can we include in our financial statements?
What are the GAAP rules on the subject?
Is there any distinction between recognizing services done by the special skilled volunteers like lawyers, doctors, etc. and the services that do not require special skills like office tasks which are done by volunteers?
can we include both services in our audited financial statements?
If so, is there any distinction in between two?

I mean for what kind of services can we record revenue and expense in the financial statement?

how can we record regular volunteering services that receive with program activities and office tasks for example?

Thank you

If you want to follow the recommendations of The Financial Accounting Standards Board (FASB), see their Statement 116, "Accounting for Contributions Received and Contributions Made".
That 61 page pdf file is available at

You would read, starting on page 6, the items starting with "Contributed Services:
--- Start of Excerpt ---
9.      Contributions of services shall be recognized if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation.  Services requiring specialized skills are provided by accountants, architects, carpenters, doctors, electricians, lawyers, nurses, plumbers, teachers, and other professionals and craftsmen.  Contributed services and promises to give services that do not meet the above criteria shall not be recognized.

10.      An entity that receives contributed services  shall describe the programs or activities for which those services were used, including the nature and extent of contributed services received for the period and the amount recognized as revenues for the period.  Entities are encouraged to disclose the fair value of contributed services received but not recognized as revenues if that is practicable."
---End of Excerpt---

And, on page 36 we see:
--- Start of Excerpt ---
123.    The Board also concluded that nonmonetary information about the nature and extent of
contributed services received is useful in understanding an organization's operations, including
its dependence on contributed services.  Accordingly, the Board decided that organizations
should describe the programs or activities for which contributed services are received and used.
Nonmonetary information, such as the number and trends of donated hours received or service
outputs provided by volunteer efforts, may be helpful in assessing the success and long-term
viability of the organization.  Other monetary information about contributed services received
also may be helpful, such as the fair values of contributed services not recognized or the dollar
amount of contributions raised by volunteers.
---End of Excerpt---

A supervisor can record the hours as they are volunteered.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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