Question – How do you record a donation by way of bill payment?
Example: NP Organization receives a bill. Donor pays the bill directly. There is no repayment to the donor obviously.
Is this recorded similarly as donated rent/space/equipment as an expense? Is it recorded as the intake of restricted donations even though you’re not actually touching the money/donation?
Answer – If the payment is made on the behalf of the charitable organization where the not-for-profit doesn’t take the payment, you would want to credit in-kind donation and debit the expense account. You will also want to make sure the person who paid the bill gets credit for her/his end of year statement for tax deductions.