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5 There is a union or professional association whose membership consists speci cally of practitioners of the skills, as opposed to such groups whose members consist of persons who work in a broad industry, a type of company, or a department of a company Admission to membership in such organization requires demonstrating one or more of the factors 1, 2, or 3 (Whether the person whose skills are being considered actually belongs to such organization is not a factor in assessing whether the skills are considered to be specialized, though it may be relevant in assessing whether the person possesses the skills) 6 Practitioners of such skills are generally regarded by the public as being members of a particular profession 7 There is a formal disciplinary procedure administered by a government or by a professional association, to which practitioners of such skills are subject, as a condition of offering their skills to the public for pay 8 Practice of the skills by persons who do so in their regular work is ordinarily done in an environment in which there is regular formal review or approval of work done by supervisory personnel or by professional peers
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APPENDIX 353: CHECKLIST FACTORS TO BE CONSIDERED IN DETERMINING WHETHER AN ORGANIZATION WOULD TYPICALLY NEED TO PURCHASE SERVICES IF NOT PROVIDED BY DONATION
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The following is a list of factors that may be helpful to:
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Not-for-pro t organizations, in deciding whether contributed services meet the third part of
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the criterion in paragraph 9b of SFAS No 116;
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Auditors, in assessing the reasonableness of the client s decision
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No one of these factors is normally determinative by itself; all relevant factors and the strength of their presence should be considered together
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Factors Whose Presence Would Indicate the Services Would Typically Need to Be Purchased 1 The activities in which the volunteers are involved are an integral part of the reporting organization s ongoing program services (as stated in its IRS Form 1023/4, fund-raising material, and annual report), or of management or fund-raising activities that are essential to the functioning of the organization s programs 2 Volunteer work makes up a signi cant portion of the total effort expended in the program activity in which the volunteers are used 3 The program activity in which the volunteers function is a signi cant part of the overall program activities of the organization 4 The reporting organization has an objective basis for assigning a value to the services
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Factors Whose Presence Would Indicate the Services Would Typically Not Need to Be Purchased The activities are not part of the reporting organization s program, or of important management or fundraising activities, or are relatively incidental to those activities; the services primarily bene t the program activities of another organization
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Volunteer work is a relatively small part of the total effort of the program
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The program activity is relatively insigni cant in relation to the organization s overall program activities No objective basis is readily available
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355 APPENDIX 353 Factors Whose Presence Would Indicate the Services Would Typically Need to Be Purchased 5 The organization has formal agreements with third parties to provide the program services that are conducted by the volunteers 6 The reporting organization assigns volunteers to speci c duties
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35 55
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Factors Whose Presence Would Indicate the Services Would Typically Not Need to Be Purchased Factor not present
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7 The volunteers are subject to ongoing supervision and review of their work by the reporting organization 8 The organization actively recruits volunteers for speci c tasks 9 If the work of the volunteers consists of creating or enhancing non nancial assets, the assets will be owned and/or used primarily by or under the control of the reporting organization after the volunteer work is completed If the assets are subsequently given away by the organization to charitable bene ciaries, the organization decides who is to receive the assets 10 If there were to be a net increase in net assets resulting from the recording of a value for the services (even though in practice, there usually is not), the increase would better meet the criteria for presentation as revenue, rather than a gain, as set forth in SFAC No 6, par 78 79, 82 88, and 111 113 11 Management represents to the auditor that it would hire paid staff to perform the services if volunteers were not available
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Assignment of speci c duties to volunteers is done by persons or entities other than the reporting organization, or the volunteers largely determine for themselves what is to be done within broad guidelines The activities of the volunteers are conducted at geographic locations distant from the organization Volunteers are accepted but not actively recruited, or, if recruited, speci c tasks are not mentioned in the recruiting materials The assets will immediately be owned or used primarily by other persons or organizations
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