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January 16, 2013

Aid Group Cuts $250-Million From Value of Noncash Gifts

In one of the largest recorded revenue write-downs by a charity, relief group Operation Compassion is slicing as much as $250-million from the estimated value of noncash gifts it received in the past four years, according to Forbes.

One of the country's largest international aid charities, Operation Compassion reported receiving more than $900-million worth of food, clothing, and other noncash gifts in its 2008 to 2011 tax filings. Following inquiries from Forbes, the charity's president, David Lorency, said it would file amended returns reducing the value of such donations by $200-million to $250-million.

Noncash gift claims have become a controversial issue in the nonprofit sphere, with watchdogs charging that organizations routinely inflate their value to exaggerate their revenue or giving. See a Chronicle of Philanthropy article on criticism of how some aid groups value donated medications.