Gift-in-Kind
A gift-in-kind is a non-cash donation of goods, services, or property to a nonprofit. Common examples include donated auction items, office supplies, or professional services.
A gift-in-kind (also called an in-kind donation) is a non-cash contribution of goods, services, or property to a nonprofit organization. Examples include donated auction items, office equipment, food for programs, professional services like legal or accounting work, and use of facilities.
Why It Matters for Fundraising
In-kind gifts reduce operating costs and provide resources that cash-strapped nonprofits might not otherwise afford. They also engage donors who may not have cash to give but can contribute goods or expertise. For events especially, in-kind donations of auction items and venue space can make the difference between a profitable event and a money-losing one.
Valuation and Tax Implications
Nonprofits should acknowledge in-kind gifts but must not assign a value to donated items — the donor is responsible for determining fair market value for tax purposes. Donated services are generally not tax-deductible for the donor (though out-of-pocket expenses related to volunteering may be). Track in-kind gifts carefully for financial reporting and donor recognition.