I am doing some pro-bono finance and accounting work for a non-profit medical clinic. They have an accounting situation that I am unsure how to handle. A piece of hospital equipment was donated to the non-profit (FMV of $175,000 according to a recent appraisal obtained by the donor organization). They (the non-profit) would like to sell the item for cash to support the lease of new clinic space. They have been in touch with a broker that has already lined up a buyer. The broker will pay the non-profit $80,000 for the equipment and will turn around and sell to the end buyer for $90,000. How should this be recorded from an accounting standpoint? From conversations I've had so far, I've been told that it could be recorded as an in-kind contribution of $175,000 for receiving the donated equipment; $90,000 increase in cash for the sale of the asset; $10,000 expense for broker expense; and $85,000 as a capital loss ($175k-90k ... also, not sure if it is called a capital loss in the non-profit world). This type of transaction is outside my area of expertise; so any advice is appreciated! Thanks!
