A non-cash gift given to a nonprofit organization is known as an in-kind donation. These contributions can come from both people and major corporations and take the shape of commodities, services, labor, and knowledge.
In-kind gifts might be challenging to keep track of because they don’t take the form of actual cash. The fair market value of the items or services you received is used to calculate the monetary worth of your donations.
What qualifies as an in-kind donation?
Different kinds of in-kind donations exist, and some of them might be more advantageous to your nonprofit than others. Here are a few examples of in-kind donations in more detail:
A donor may contribute an in-kind donation in the form of goods, which can include:
- Office equipment
- Building materials
There can also be expertise donations where a professional lends advice to an organization for free.