{"id":23023,"date":"2025-04-16T15:16:26","date_gmt":"2025-04-16T22:16:26","guid":{"rendered":"http:\/\/localhost:10053\/what-are-in-kind-contributions\/"},"modified":"2025-05-23T13:13:14","modified_gmt":"2025-05-23T20:13:14","slug":"what-are-in-kind-contributions","status":"publish","type":"post","link":"https:\/\/www.insidephilanthropy.com\/explainers\/what-are-in-kind-contributions","title":{"rendered":"What Are In-Kind Contributions?"},"content":{"rendered":"\n<div style=\"margin-bottom:2%\" class=\"wp-block-genesis-blocks-gb-container explainer-heading gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\">\n<div class=\"wp-block-genesis-blocks-gb-columns gb-layout-columns-3 gb-3-col-equal\"><div class=\"gb-layout-column-wrap gb-block-layout-column-gap-2 gb-is-responsive-column\">\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"400\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png\" alt=\"\" class=\"wp-image-23311\" style=\"width:150px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png 500w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new-300x240.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"381\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png\" alt=\"\" class=\"wp-image-23078\" style=\"width:300px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png 750w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page-300x152.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\" style=\"text-align:center\">\n<p><\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-container gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\">\n<p><strong>In-kind contributions are non-monetary gifts.<\/strong> They can be donated goods, services, labor, use of facilities or equipment, and the like. Any nonprofit will tell you they prefer cash gifts and grants. Even so, in-kind donations often play important roles for big and small nonprofits alike.&nbsp;<\/p>\n\n\n\n<p>In-kind contributions can include any of these categories:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Donated goods<\/strong> such as food, computers, clothing and more.<\/li>\n\n\n\n<li><strong>Pro bono services<\/strong> such as grantwriting or legal advice.<\/li>\n\n\n\n<li><strong>Volunteer<\/strong> <strong>labor<\/strong>.<\/li>\n\n\n\n<li><strong>Use of facilities or equipment<\/strong> at no charge.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Examples of In-Kind Contributions<\/strong><\/h2>\n\n\n\n<p>In-kind contributions are any noncash gift to a nonprofit. In-kind gifts can be tangible, like donated food or furniture, or intangible, like pro bono services. These are just a few examples of in-kind contributions a nonprofit could receive:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An architect who consults for free on a nonprofit\u2019s capital project.<\/li>\n\n\n\n<li>A local vendor that donates anything from water to office supplies.<\/li>\n\n\n\n<li>A magazine that gives a nonprofit free advertising space.<\/li>\n\n\n\n<li>An alcohol company that donates cases of wine for a nonprofit\u2019s fundraiser.<\/li>\n\n\n\n<li>The many individuals who donate good-condition used clothing to an organization that supports refugees.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How do in-kind gifts to nonprofits work? <\/strong><\/h2>\n\n\n\n<p>In many ways, giving or receiving in-kind contributions is similar to giving or receiving financial contributions. But there are some unique aspects of in-kind contributions to be aware of.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>In-kind contributions need to be accounted for and reported<\/strong><\/h4>\n\n\n\n<p>Nonprofits record the value of an in-kind contribution as revenue, and (for goods but not services) the donor can take a tax deduction for it. Nonprofits track in-kind donations as part of their fundraising records. Nonprofits need to account for in-kind contributions in financial reports and tax filings. These numbers may also be needed in grant applications and <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-grant-report\" target=\"_blank\" rel=\"noreferrer noopener\">grant reports<\/a>. Nonprofits also need to track in-kind donations as part of donor records and donor stewardship. Nonprofits should record what they received, when they received it, who donated it and the donor\u2019s contact information, and the value of the in-kind contribution. Nonprofits should familiarize themselves with the <a href=\"https:\/\/www.irs.gov\/taxtopics\/tc506\" target=\"_blank\" rel=\"noreferrer noopener\">IRS rules regarding in-kind donations<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Determining the value of in-kind contributions<\/strong><\/h4>\n\n\n\n<p>In order to account for in-kind donations, a nonprofit needs to know their value. For many items, especially lower-value items such as used clothing, the donor can self-report the estimated value of the gift. For things like donated vehicles, the nonprofit can research the fair-market value online. Donations of high-value items like art and real estate should be professionally appraised. The IRS offers guidance to donors about <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-publication-561\" target=\"_blank\" rel=\"noreferrer noopener\">determining the value of donated property<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Acknowledging donors for in-kind donations<\/strong><\/h4>\n\n\n\n<p>Donors who make in-kind contributions should receive a thank-you and an acknowledgement letter or receipt that indicates the value of the contribution. (A receipt may be optional for lower-value contributions.) Up to certain limits, donors can receive tax deductions for in-kind contributions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why are in-kind gifts important in philanthropy? <\/strong><\/h2>\n\n\n\n<p>Even while cash is king, in-kind gifts can be helpful to nonprofits of all sizes. These are a few of the ways in-kind gifts can benefit nonprofits:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Pro bono services can be a big help to nonprofits<\/strong><\/h4>\n\n\n\n<p>Experts who are willing to volunteer their time and services can be invaluable to nonprofits. Pro bono legal advice, accounting services, and consulting on everything from marketing strategy to organizational sustainability can be lifesavers to small-budget or cash-strapped nonprofits. Expert advice can also enable more established nonprofits to refine their operations or take their work to the next level.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>In-kind gifts can be counted as matching funds<\/strong><\/h4>\n\n\n\n<p>In-kind donations can be critical when grantseeking. Many public funders, and some private ones, will require grantseekers to show \u201cmatching funds\u201d or multiple funding sources for a project. In a grant application that requires a nonprofit to show matching funds, the project revenue sources could include a mix of foundation grants, gifts from <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/who-is-a-major-donor\" data-type=\"link\" data-id=\"https:\/\/www.insidephilanthropy.com\/explainers\/who-is-a-major-donor\" target=\"_blank\" rel=\"noreferrer noopener\">major donors<\/a>, and in-kind contributions such as free advertising space to promote the program, donated food and drinks, and volunteer time. Especially for nonprofits with small budgets, in-kind contributions are important sources of matching funds.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Expanding a nonprofit&#8217;s support through in-kind contributions<\/strong><\/h4>\n\n\n\n<p>In-kind contributions often come from donors who also make financial contributions to a nonprofit. That may be a board member who writes an annual check to the nonprofit and also lets the nonprofit use a conference room at their company for board meetings at no charge. Or a corporation headquartered in the community that donates thousands of dollars worth of their product to the nonprofit as well as making a grant through the corporate foundation. In other cases, a local business that does not have capacity to write a check to the nonprofit can help by allowing the nonprofit to use their venue for an event for free. By varying the types of contributions supporters can make, nonprofits diversify their revenue streams and create many pathways to expand and engage their support network.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Additional Tips for In-Kind Contributions <\/strong><\/h2>\n\n\n\n<p>Nonprofits and funders should be advised of these tips regarding in-kind donations:&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Not all in-kind contributions are helpful or welcome. <\/strong><\/h4>\n\n\n\n<p>If a nonprofit receives donated goods it doesn\u2019t need, can\u2019t use, or has no space to store, that becomes more of a burden than a help to a nonprofit. Donors should find out what nonprofits need and can make good use of before making an in-kind contribution. Nonprofits can and should say \u201cno, thank you\u201d to an in-kind offer that would cause more work or trouble than it\u2019s worth. Nonprofits can also create gift policies that describe what kinds of donated goods they do and don\u2019t accept.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Nonprofits should be prepared to accept in-kind contributions.<\/strong> <\/h4>\n\n\n\n<p>To accept in-kind contributions, a nonprofit should know what your organization needs, can use, and has space to store. Nonprofits should also have a clear process to track, acknowledge, and report on in-kind donations.&nbsp;In-kind contributions are one of many ways supporters can help a nonprofit.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Learn more about types of giving at Inside Philanthropy\u2019s <a href=\"https:\/\/www.insidephilanthropy.com\/learn\" target=\"_blank\" rel=\"noreferrer noopener\">Learn Center<\/a>. Become a <a href=\"https:\/\/www.insidephilanthropy.com\/membership\" target=\"_blank\" rel=\"noreferrer noopener\">subscriber<\/a> today.&nbsp;<\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">You might also want to check out:<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/whats-the-difference-between-a-gift-and-a-grant\">What\u2019s the difference between a gift and a grant?<\/a><\/p>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p class=\"\">Non-monetary donations to a nonprofit are called in-kind contributions. A donor can give goods like food or computers, services, time and labor, or use of facilities or equipment at no cost.<\/p>\n","protected":false},"author":470,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":true,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"content-sidebar","footnotes":""},"categories":[26779],"tags":[26780],"ppma_author":[32648],"class_list":{"0":"post-23023","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-explainers","7":"tag-ip-explainer","8":"author-ipstaff","9":"entry"},"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"IP Staff","author_link":"https:\/\/www.insidephilanthropy.com\/author\/ipstaff"},"authors":[{"term_id":32648,"user_id":470,"is_guest":0,"slug":"ipstaff","display_name":"IP Staff","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","author_category":"","first_name":"IP Staff","writer-profile":"","last_name":"","user_url":"","job_title":"","linkedin":"","instagram":"","twitter":"","facebook":"","description":""}],"_links":{"self":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23023","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/users\/470"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/comments?post=23023"}],"version-history":[{"count":12,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23023\/revisions"}],"predecessor-version":[{"id":213184,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23023\/revisions\/213184"}],"wp:attachment":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/media?parent=23023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/categories?post=23023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/tags?post=23023"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/ppma_author?post=23023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}