In-Kind Donation
An in-kind donation is a non-cash gift of goods, services, or time contributed to a nonprofit organization instead of a monetary donation.
An in-kind donation is any non-cash contribution made to a nonprofit, including physical goods (food, equipment, supplies), professional services (legal, accounting, design), and use of facilities or property. In-kind donations are a vital resource for nonprofits, often making up a significant portion of total support.
Why It Matters for Fundraising
In-kind donations extend a nonprofit's budget by providing goods and services that would otherwise need to be purchased. They also engage a different type of supporter — people and businesses who may not have cash to give but can contribute resources, expertise, or products. For events especially, in-kind donations of auction items, catering, and venues can dramatically improve profitability.
Tracking and Acknowledgment
Nonprofits should track in-kind donations carefully for financial reporting (GAAP requires reporting certain in-kind contributions at fair value) and donor stewardship. Acknowledge in-kind gifts with the same gratitude as cash gifts, but do not assign a dollar value — the donor is responsible for valuation for tax purposes.