What Are In-Kind Donations?
An in-kind donation or gift is when someone makes a contribution to your nonprofit or church that’s not cash or stock. For example, in-kind donations could be goods or services, or even an expertise.
The advantage of in-kind donations for your nonprofit or church is you could potentially save a lot of money by receiving goods and services for items you would otherwise have to pay for. So they help organizations save money and function within their budgets, and in some cases, donors receive a tax write-off.
What are Some Examples of In-Kind Donations?
Examples of in-kind goods include:
- Office space
- Computers, software, or other technology
Examples of in-kind services include:
- Legal advice
Keep in mind, if you are receiving in-kind donations in the form of property or live animals, there are certain laws and forms required. Some of them can be complicated, so it’s important to research the rules before accepting those two forms of donations in kind.
Also, it’s important to set a policy or rules for your organization for what you are and aren’t willing to accept as donations in kind. If not, you may end up with items you aren’t able to use.
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[…] by the IRS. This includes a wide range of gifts including cash, stock, legal advice, or in-kind donations. The donation receipt can be handwritten, emailed, or sent via postal mail or carrier pigeon, but […]