AERDO Interagency GIK Standards,
January 1999

Guidance for Understanding Standards

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Standard #7 - Disclosure

Background: Limited guidance has been available with respect to a consistent minimum set of information that should be disclosed by organizations regarding their GIK donation activities in audited financial statements. This standard reflects the consensus of the task force concerning a minimum set of consistent disclosures appropriate to providing essential information relative to GIK donations and program activities.

GIK Standard — Disclosure: Financial statements should disclose information about the valuation, source, and use of GIK. The basis and method for valuing donated GIK should be disclosed in an organization's audited financial statements. The major sources of GIK revenue such as governments, other non-profits, and private donors should be disclosed, in total, by source. The financial statement should also contain a disclosure of the amount of GIK used by the organization in its own programs and the amount in total of GIK donated to other non-profit organizations. Additionally, for GIK donated to other non-profits, the amount of GIK for which physical possession was taken and the amount which was shipped directly from the donor to other organizations should be disclosed. Organizations are also encouraged to disclose the value of GIK which were not recorded in the financial statements, but for which the organization facilitated in the procurement and/or use.