if they were not donated. A common guideline is to consider how much the organization would reasonably expect to pay if it were to purchase the item. Reporting and documenting in-kind contributions The contributed services have to be recognized in the financial statements if the services received: create or enhance non-financial assets; require specialized skills; are provided by individuals possessing those skills, and would need to be purchased if not provided by donation. It is necessary for in-kind contributions to be documented, accounted for and valued. All in-kind contributions should have supporting documentation, including why the transaction is allowable for the grant purposes. Payment in kind Payment in kind is generally an exchange of goods or services for other goods or services with no medium of exchange. They are one of the components of total earnings. That is why they should count as a part of the value on which social security contributions are based and calculated. Income in-kind Income in-kind is then a non-cash reward received by an employee for work performed. This can include: drink, food, fuel, footwear, clothing, free or subsidized housing or transport, car parking, electricity, gym membership, nurseries, low or zero-interest loans or subsidized mortgages. According to the System of National Accounts (SNA 1993): "Income in kind may bring less satisfaction than income in cash because employees are not free to choose how to spend it. Some of the goods or services provided to employees may be of a type or quality which the employee would not normally buy." Regulations of income in-kind The safeguard and a legislative is needed in case someone wanted to abuse those benefits. Different ways: Allowing a maximum percentage of the wage: In-kind payments exceeding 50% of the wage are considered doubtful. Therefore countries set a threshold, which cannot be infringed by providing higher share of in kind income versus cash income. The majority of all countries have lower thresholds, with many not allowing in-kind payments exceeding 30 per cent of the wage. For example in Spain, the threshold reaches exactly 30%, moreover, in-kind payments are prohibited there as a part of the minimum wage. Setting a maximum level: In some countries, a specific maximum value of in kind benefits in set in terms of money. It is an example of Switzerland, where food and housing can represent a maximum of 33 CHF per day. The similar system is in