Fixed Assets Disposal Policy
All voluntary disposals of fixed assets must be pre‐approved by the board of directors. The board will
consider such disposals on a case‐by‐case basis at the request of the executive director.
Methods of voluntary disposal may include sale, trade, recycle, donate, scrap, or most expeditious manner
under the circumstances. The board may either specify a preferred disposal method or delegate the
decision to the executive director.
Special Considerations
 Contributed fixed assets –Care will be taken to see that any disposal of contributed fixed assets is
properly reported in compliance with IRS regulations governing the disposal of contributed fixed
assets.
 Computers and related equipment – Care will be taken to see that all data, memory, and drives
are deleted, erased, wiped, and / or otherwise cleared prior to disposal of any computer or related
equipment containing organizational data.
All disposals, voluntary and involuntary (e.g., theft, casualty, etc.), must be documented by the executive
director on the attached form and reported to the board. Fixed assets disposal records are to become
part of the permanent records of the organization.
Any gains or losses realized from the disposal of fixed assets will be accounted for in the period in which
a) the voluntary disposal occurs, or b) the involuntary disposal is discovered.
The executive director is responsible for communicating disposals to the treasurer of the board of
directors in a timely fashion. The board treasurer is responsible for recording disposals in the fixed assets
records and making the relevant adjustment(s) to the organization’s general ledger in a timely fashion.
The attached Fixed Assets Disposal Record is an integral part of this policy.
HOLY FAMILY CHILD CARE AND DEVELOPMENT CENTER, INC.
FIXED ASSET DISPOSAL RECORD
Please fill out ALL relevant information:
Asset ID
Description
Model #
VOLUNTARY DISPOSAL
Authorized by board of directors on
Disposal method approved by board of directors:
SELL
.
DONATE
Was this asset contributed?
YES
NO
Is this asset a computer or related equipment?
YES
NO
TRADE
Authorized Board Signature
Actual disposal method:
SOLD
RECYCLE
Serial #
SCRAP
Date:
DONATED
TRADED
RECYCLED
SCRAPPED
OTHER (Specify)
Disposal details:
Asset Recipient Name:
Address:
City:
State:
Zip Code:
Telephone #:
Amount Paid:
Payment Method: CASH
CHECK #
CREDIT CARD
Describe how price was determined, including all other offered or refused amounts.
Executive Director Signature:
INVOLUNTARY DISPOSAL
Reported to board of directors on
Type of loss: THEFT
CASUALTY (describe)
Authorized Board Signature
Executive Director Signature:
OTHER (Specify)
Date:
.
OTHER (describe)
Date:
Date:
ANY