Nonprofit update

What’s the fair value?  That is the central question behind the whole issue of booking albendazole and mebendazole as GIK contribution revenue.

I will have several posts on this issue, including one or two on the accounting rules.  I’ll start with a very casual discussion, work towards more objective and verifiable valuation, and then discuss the accounting.

In recent weeks I’ve read two particular articles on health issues that describe the cost of a deworming regimen as an aside.   I doubt either of the authors or their editors knew how intense the valuation issue has become in the last 60 days.

So, let’s give the magazines and authors some slack.  Don’t pick on them too hard.  At the same time, their comments provide some background.

Here’s two weak data points for the cost of deworming meds:

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William P. Barrett just reported that the Better Business Bureau Wise Giving Alliance has asked several dozen large charities how they value deworming meds.

In his article, BBB Asks Charities To Explain Deworming Med Valuations, he says the BBB sent a letter in early January asking for a variety of information, including dollar volume of the meds distributed, number of pills, and the accounting rationale for the valuation that was used.

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