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Creating merchandise certificate vs. cash value gift certificate

edited Nov 11, 2008 12:19PM in Accounting / ERP 4 comments

I'm trying to figure out how best to create a gift certificate which is redeemable for a specific item, as opposed to a cash value. I may be going about this in a backward manner, so please feel free to say so

We give out premiums in exchange for pledges to our organization (a public radio station). There is a cash amount we receive, for which we must account. The donor may select a premium item (of which we have limited quantities) in acknowledgement of their donation. As part of our statement for donor's tax records, we have to deduct the retail value of the item from the donation, and indicate the balance as the tax deductable contribution to our 501(c)3.

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