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7 Completing AFR Schedule C

 

In-Kind Contributions of Services and Other Assets

 

Introduction

 

Use Schedule C to report in-kind—i.e. non-cash—contributions of professional services, materials, supplies and the contributed use of assets (e.g. utilities and use of facilities and property to which the donor retains legal ownership). Use Schedule C to also report contributions of intangible assets such as a station grantee's broadcast license received from donors other than the licensee.    

 

Institutional stations: Support from the Grantee's Licensee is limited to indirect administrative support (Schedule B) and direct support (Schedule A). See Section 2.6

 

NFFS Eligibility

For information about the NFFS eligibility of in-kind contributions, see Sections 2.5 and 2.8.3.

 

 

Schedule C Instructions

 

After entering a value on Lines 1, 2, 3 and 5 you must select the donor code which represents the source of the in-kind contributions entered on that line. If a value represents more than one source, please enter the donor code which represents the majority of the value.

 

Donor Codes

BS-business

FD-foundation

FG-federal government

G-local government

OT-other

PB-public broadcasting entity

PU-private university

SG-state government

SU-state university

  

 

Line Item Instructions

 

Line 1 - Professional Services (eligible as NFFS)

 

In addition to meeting all other NFFS criteria for in-kind contributions (valuation, documentation, services would be purchased if not donated, inclusion in audited financial statements, not excluded due to policy restrictions), in order to be eligible as NFFS professional volunteer services contributed to the grantee must either require specialized skills or create or enhance a non-financial asset (Statement of Financial Accounting Standards (SFAS) No. 116), and must be actively engaged in charging others for the same or similar services:

 

Checklist for Volunteer Services to be Included as NFFS

To Be Eligible as NFFS Donated

Volunteer Services Must

Meet the recipient, source, form and purpose criteria for contributions

P

Satisfy SFAS No. 116, paragraph 9 - Creates or enhances a financial asset or requires a specialized skill

P

Be a service the Grantee would purchase if not donated

P

Be recognized as revenue in the audited financial statements for the AFR reporting year

P

Donor is actively engaged in charging others a fee for the same or similar services

P

Donor has provided documentation that satisfies CPB's documentation requirements See Section 2.5

P

 

 

For more information about the NFFS eligibility of in-kind contributions, see Sections 2.5 and 2.8.3

 

 

Line 1A – Legal

Use this line to report in-kind contributions of legal services that meet the NFFS eligibility criteria for professional volunteer services.
 

Line 1B – Accounting and/or auditing

Use this line to report in-kind contributions of accounting and/or auditing services that meet the NFFS eligibility criteria for professional volunteer services.

 

Line 1C – Engineering

Use this line to report in-kind contributions of engineering services that meet the NFFS eligibility criteria for professional volunteer services.

 

Line 1D – Other professionals (see specific line item instructions in Guidelines before completing)

Use this line to report in-kind contributions of services that meet the NFFS eligibility criteria for professional volunteer services and that do not fit into categories 1A-1C. Be specific when reporting the principal trades or professions for other professional services.  The donor code, person’s name or company name is never an acceptable description.  Identify the professional service or discipline that the person is engaged in.  Examples of acceptable descriptions for “Other Professionals” include: Web design and maintenance; Web domain host; grant writer; computer technician; digital editor; graphic arts/design consultant; IT consultant; marketing consultant; public relations/media consultant; corporate benefits consultant; illustrator; proofreader; photographer; appraiser; caterer (if not related to fund raising activities).

 

 

Line 2 - General Operational Services (eligible as NFFS)

 

Line 2A - Annual rental value of space (studio, offices, or tower facilities)

Use this line to report donations of the use of studio, office, or tower facility space. In keeping with the NFFS eligibility criteria for all in-kind contributions, donations of space must be valued by the donor at fair market value. This is determined by comparing the quality and quantity of the station's space to comparable space for which the donor charges a fee.  If the donor does not rent comparable space, an independent appraisal must be done by a qualified appraiser (e.g. M.A.I., S.R.P.A., S.R.E.A. or A.S.A.).

 

Line 2B - Annual value of land used for locating a station-owned transmission tower

Use this line to report donations for the use of land used to locate a station-owned transmission tower. In keeping with the NFFS eligibility criteria for all in-kind contributions, donations of land use must be valued by the donor at fair market value. This is determined by comparing the quality and quantity of the station's space to comparable space for which the donor charges a fee.  If the donor does not rent comparable space, an independent appraisal must be done by a qualified appraiser (e.g. M.A.I., S.R.P.A., S.R.E.A. or A.S.A.).

 

Line 2C - Station operating expenses

Use this line to report in-kind contributions of station operating expenses. This category includes the use of electrical, telephone and other utilities paid by a third party. It may also include consumable materials such as office supplies..

 

Line 2D - Other

Use this line to report in-kind contributions of other general operational services that do not fit into categories 2A-2C. Be specific—use a description that sufficiently identifies the NFFS eligibility of the services reported on this line.

 

 

Line 3 - Other Services (eligible as NFFS)

 

Line 3A - Instructional television and educational radio

Use this line to report in-kind contributions of ITV and/or educational radio services that are eligible as NFFS. For information about the NFFS eligibility of ITV and educational radio services, see Section 2.5.7

 

Line 3.B - State public broadcasting agencies

Use this line to report in-kind contributions from eligible state public broadcasting agencies. These are the only agency allocations accepted as NFFS:

 

·         Alaska Public Broadcasting Commission (APBC)

·         Florida Department of Education (FLDOE)

·         eTech Ohio Commission (eTech Ohio)

 

TV Grantees: In-kind contributions for new or expanded facilities or equipment are not eligible as NFFS and must be reported on Schedule D.

 

Lines 3C - Local advertising

Use this line to report in-kind contributions of advertisements in local newspapers and magazines, on commercial television or radio, or over the internet. The advertising must be related to program or station promotion and not consist of merely printing or airing the station's programming schedule.

 

In cases where the Grantee receives an in-kind donation of advertising for a production from a production underwriter, there is a concern that the contributed advertising and promotion have become of significant commercial value to the underwriter. This is especially the case when the underwriter’s identity is featured prominently in the program promotion or when the program promotion is only a part of promotion for the underwriter’s own business activities. This fact calls into question whether even substantiated value to the public broadcaster represents a contribution, an exchange, or some combination of both.  Grantees should not recognize as a contribution or NFFS the portion of total value received that represents an exchange transaction with the underwriter.

 

Line 3D - National advertising

Use this line to report in-kind contributions of advertisements in national newspapers and magazines, on commercial television or radio, or over the internet. The advertising must be related to program or station promotion and not consist of merely printing or airing the station's programming schedule.

 

In cases where the Grantee receives an in-kind donation of advertising for a production from a production underwriter, there is a concern that the contributed advertising and promotion have become of significant commercial value to the underwriter. This is especially the case when the underwriter’s identity is featured prominently in the program promotion or when the program promotion is only a part of promotion for the underwriter’s own business activities. This fact calls into question whether even substantiated value to the public broadcaster represents a contribution, an exchange, or some combination of both.  Grantees should not recognize as a contribution or NFFS the portion of total value received that represents an exchange transaction with the underwriter.

 

Line 4 - Total in-kind contributions - services and other assets eligible as NFFS

This line will total lines 1 through 3, which will forward to the Summary of Nonfederal Financial Support.

  

Line 5 - In-kind Contributions Ineligible as NFFS

Use this line to report in-kind contributions of services or the use of assets that are ineligible as NFFS. For information about each of these NFFS exclusions, see Sections 2.5 and 2.8.3.

 

Line 5A - Pre-recorded compact discs, records, tapes, cassettes and film libraries

 

Line 5B - Exchange transactions

 

Line 5C - Federal or public broadcasting sources

 

Line 5D - Fundraising related activities

 

Line 5E - ITV or educational radio outside the allowable scope of approved activities

 

Line 5F - Local productions

 

Line 5G - Program supplements

 

Line 5H - Programs that are nationally distributed

 

Line 5I - Promotional items

 

Line 5J - Regional organization allocations of program services

 

Line 5K - State PB agency allocations other than those allowed on Line 3B

 

Line 5L - Services that would not need to be purchased if not donated

 

Line 5M - Other

 

 

Line 6 – Total in-kind contributions - services and other assets

This line totals the in-kind contributions eligible as NFFS reported on Line 4 with the in-kind contributions ineligible as NFFS reported on Line 5.

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