Donating Art

StudioJhan_KRB

Hello,

We're a small fine arts company and will be donating some art this year.

How do we account for the no-cost transfer of art to another person as an owner (aka it's not in our inventory anymore, so we can't sell it) that we would have sold for $X if it wasn't donated?

Thanks!

Kyle R. Brady
VP Business Operations, Treasurer, Secretary
The Studio :: J'han Company LLC

Barsin

Hey there @StudioJhan_KRB

This is an interesting example you've brought up. I think it all depends on a myriad of factors. Have you inputted the cost or the art in Wave? I know that Wave cannot keep track of items or quantity, but it can keep track of value.

Wave does not have a way of categorizing a transaction to a non-expense account unfortunately. Some folks have use case examples where they need to charge a transaction to a non-expense account but there isn't a way to do this in Wave.

I will leave it there as I'm not an accounting professional, but more an application support specialist and hope that some other accountants in the community chime in!

Really interesting question though! Thanks for this!

StudioJhan_KRB

I'm wondering if it can be logged as an expense or as negative income.

Thanks!

CallieP

Hey @StudioJhan_KRB , thanks for getting back! A transaction can be logged as an expense or negative income, yes! As for whether this is the best choice for this circumstance, an accountant will be better equipped to provide expert insight into that decision. I can say that we've noticed a gap in our support offerings for how to account for donations and are working on creating content to fill this in!