Indian Gaming Association Notes to Financial Statements Note 1: Summary of Significant Accounting Policies (Continued) Contributions of Services
Contributions of services shall be recognized if the services received (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. In-Kind Contributions - consist of donated professional services and donated goods and facilities. Donated personal services of volunteers are not reflected in the accompanying financial statements, because such services do not require specialized skills. There were no in-kind contributions for the years ended December 31, 2025 and 2024. Functional Allocation of Expenses The costs of providing the various programs and supporting activities of IGA have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Salaries and wages consist of payroll and employee benefits expense. Trade show expenses include all costs associated with trade show operation and payroll cost of the trade show coordinator. General and administrative expenses consist of general overhead costs incurred by IGA for its operations including all employee benefits expense. Salaries and related benefits are allocated based on employees' direct time spent on program or support activities or the best of time spent. Expenses that are not directly incurred by a program are allocated between program and supporting services based on full time personnel equivalents. Income and Other Taxes IGA is exempt from income taxes under Section 501(c)(6) of the Internal Revenue Code for all activities except for all unrelated business income. IGA files a business income tax return but does not generate taxable income from the activity and, therefore, has no tax liability for the years presented in these financial statements. Although IGA is tax-exempt, IGA does not qualify as a "charity," and thus contributions to IGA are not deductible by the donor as a charitable contribution. This tax treatment is applicable to private businesses and does not restrict tribal governments from making contributions to IGA. IGA is also exempt from the District of Columbia Income and Franchise Tax as it meets the qualifications of the District of Columbia Income and Franchise Tax Act of 1947, as amended. IGA is not exempt from the District of Columbia Personal Property Tax or the Sales and Use Tax. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include the allowance for credit losses and useful lives assigned to property and equipment.
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