Glossary
Revenue & Donations

Gift‑in‑Kind

By: Alec Hollingsworth
Updated:  
June 2, 2025

DEFINITION:

A gift-in-kind is a non-cash donation of goods or services to a nonprofit, recorded at fair market value.
A Gift-in-Kind (GIK) refers to a non-cash donation made to a nonprofit organization in the form of goods, services, or property instead of money. Examples include donated equipment, supplies, professional services, or items for an auction. GIKs must be recorded at their fair market value as of the date of the donation, in accordance with accounting standards. Proper documentation and valuation are necessary to ensure transparency and compliance with regulatory requirements. Nonprofits often rely on GIKs to supplement their resources, reduce expenses, and enhance their ability to deliver programs and services to their communities.

Key Takeaways

  • Gift-in-kind donations are non-cash contributions.
  • They must be valued and recorded according to accounting standards.
  • Proper documentation is essential for transparency and compliance.
  • They can help nonprofits reduce costs and extend resources.

Why It Matters

Gift-in-kind donations can significantly reduce costs and expand a nonprofit's impact.

Real World Example

A local technology company donates 10 laptops to a nonprofit running after-school programs for underprivileged youth. The nonprofit determines the fair market value of the laptops and records the total amount as a gift-in-kind donation in their accounting system. This donation allows the nonprofit to offer computer literacy classes without purchasing new equipment, conserving their cash resources. The organization provides the donor with a detailed acknowledgment letter and includes the GIK in their annual financial statements, demonstrating transparency and proper stewardship.

How Aplos Helps

In Aplos, you can easily track, record, and report gift-in-kind donations. The platform allows you to document fair market values, attach supporting files, and ensure compliance with accounting standards, making it simple to maintain accurate records and acknowledge donors appropriately.
launch trading trade finance startup icon

Try it yourself. Start your 15 day free trial

No commitment or credit card required.

Try it For Free

Frequently Asked Questions

What qualifies as a gift-in-kind?

A gift-in-kind is any non-cash donation, such as goods, equipment, professional services, or property, given to a nonprofit.

How should nonprofits value gift-in-kind donations?

Nonprofits must record the fair market value of the donated goods or services at the time of donation, following accounting standards.

Are gift-in-kind donations tax-deductible?

Gift-in-kind donations may be tax-deductible for donors, but it's important to consult a tax advisor for specific guidance.

How does Aplos help track gift-in-kind donations?

Aplos allows organizations to record, value, and document gift-in-kind donations, making compliance and donor acknowledgment easy.

Related Terms

Expense Reimbursement
Grant Budget
UBIT (Unrelated Business Income Tax)
Contribution
Accrual Basis
Grant Restriction

Aplos has everything you need in one place for streamlined nonprofit and church management.

Start A Free Trial

Copyright © 2025 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Aplos

Our StoryTeam AplosCareersReviewsContact UsSecurity

Resources

AcademyAPIPartnershipsReferral PartnersAplos StatusAplos Glossary

Products & Features

Nonprofit SoftwareChurch SoftwareNonprofit AccountingChurch AccountingDonor ManagementNonprofit CRMOnline DonationsFundraising SoftwareText to GiveBill PayPayrollPrepaid Cards

For Customers

Support CenterTraining CenterFind An Aplos Advisor

Compare Us

Compare Quickbooks® For NonprofitsCompare Quickbooks® For ChurchesCompare Sage Intacct For Nonprofits

Services

Nonprofit Bookkeeping ServicesChurch Bookkeeping ServicesImplementation Services
Start A Free Trial

Copyright © 2024 Aplos Software, LLC. All rights reserved.

Aplos partners with Stripe Payments Company for money transmission services and account services with funds held at Fifth Third Bank N.A., Member FDIC.

Legal StuffPrivacy Policy
California Consumer Privacy Act NoticeDo Not Share My Personal Information