For those inquiring or otherwise interested...
Here's how it can be viewed from an accounting standpoint. Mind you, I am not an accountant. I would strongly recommend you consult with or hire a certified public accountant (CPA in the US), or a tax attorney, preferably one specializing in non-profits, if that is the form of your entity.
In any case, this is how I see the donation/gift of equipment from an accounting point of view. Regardless of being a non-profit [501c3 in the US, Registered Charity in Canada], or another form of ownership, generally this is how it would be handled in dual entry accounting following generally-accepted accounting principles (GAPP).
A donation/gift of equipment is made to the organization -- Assuming the bike is worth $100, you would --
1a. Put the bike in a secure location within your facility, Debit [increase $100] Asset category Inventory - Bikes
1b Record the donation, Credit [increase $100] Income/Revenue category In-Kind (non-cash) Donations/Gifts (the latter if you are not a charity)
When the equipment is sold by the organization, say at $150 --
2a. Accept cash for the bike, Debit [Increase $150, $157.50 with sales tax*] Asset category Cash in Bank
2b. If sales tax is collected in step 2a, Credit [Increase $7.50] Liability category Sales Tax Payable, at the time of the sale, if it applies to such a sale in your area.
2c. Record the sale, Credit [increase $150] in Revenue category Gross Sales
2d. Record the cost of the sale, Debit [increase $100] Sales Revenue sub-category Cost of Good Sold
2e. Hand over the bike to the buyer, and remove the item from inventory, Credit [decrease $100] Asset category Inventory - Bikes
2f. Note: Since Gross Sales of $150 is reduced by the Cost of the Sale of $100, the accounting process would clarify your Net Sale amount as $50 (for informational purposes mainly).
Later, if 2b applies, pay your Sales Tax Payable Liabilities to the State/Province --
3a. Pay from your checking account to the Gov't sales tax agency, Credit [decrease $7.50] Asset category of Cash in Bank
3b. Remove the tax liability of the transaction, Debit [decrease $7.50] Liability category Sales Tax Payable
This is the general accounting activity for the donations/gifting of the equipment, and its sale, for any kind of organization. Other accounting categories may come into play if sales discounts, donor premiums, or the like, are a part of either the donation or the sale.
For non-profits, assuming this sale is part of your purpose, and therefore an exempt activity according to the IRS (or the CRA), then the net sale amount of $50 would not be taxable. If it is not an exempt activity, it could be considered non-related business income and it might be taxable. Might because, non-profits in the US are allowed a certain portion of non-related business income (outside of their exempt purpose) before it is considered taxable. Above that portion, the non-related business income would then be taxed similar to profit making entities. It makes sense for the non-profit, if there is a continual stream of non-related business income (outside of their exempt purpose), to create a wholly-owned profit making subsidiary that can function and be taxed like other businesses and with the net profit (after taxes) support the non-profit to fulfill its exempt purposes.
Again, it is strongly recommended that you defer to the expertise of a certified public account or a tax attorney (preferably those specializing in non-profit/charity laws, taxes and the rules of accounting)
* assuming sales tax rate is 5%
I hope this clarifies things. Non-profits do record sales. Don't be fearful of recording them. Publications, media, subscriptions, apparel, etc. are normal sales for non-profits. Removing a bike from your inventory and accepting cash for it does not comprise a donation, it is a sale. This is normal for the types of orgs on this forum.
Cheers, to success,
Clark Forden