How to Record a Donated Land or Real Estate Property at Appraised Fair Value
Recording land donated for the NGO's permanent use at an independently appraised value.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Land (Fixed Asset) | Asset (+) | 200,000.00 | - |
| Contributions Revenue (Permanently Restricted) | Revenue (+) | - | 200,000.00 |
💡 Accountant's Note
Donated real estate is recorded at appraised fair value. Land is never depreciated. If the donor restricts the property to a specific use, the contribution is permanently restricted.
Practitioner & Systems Framework
💻 ERP Architecture
Require an independent real estate appraisal dated within 90 days of the donation. Record land at appraised value — never depreciate land. Buildings received as gifts are recorded at appraised value and depreciated over their remaining useful life. The property must be legally transferred (title deed) to the NGO before recognition. Secure appropriate property insurance immediately.
⚠️ Audit Flags
Real estate donations require independent appraisal — the donor's estimated value is not acceptable. Title transfer documentation is mandatory. If the donor retains any rights (right of first refusal, life tenancy), the gift may not be complete and recognition should be deferred or adjusted for the retained interest.
📄 Required Documentation
Independent real estate appraisal, title deed transfer, donor deed of gift, fixed asset register entry, insurance policy for the property, environmental assessment (if required), and any donor use restrictions.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.