inKind

In-kind, commonly written as in-kind donation or in-kind giving, refers to gifts of goods or services rather than cash. In the nonprofit sector, in-kind contributions are provided directly to a recipient organization to support its programs, operations, or mission. In-kind can include physical items such as clothing, equipment, food, or supplies, as well as donated professional services like legal, accounting, or marketing work. Time donated by volunteers is often treated separately from in-kind donations for tax and accounting purposes, though some organizations assign value to skilled volunteer services.

Valuation and accounting are central to in-kind gifts. For accounting, a nonprofit typically records the donation at the fair market value of the donated items or services at the time of receipt. The donor may be able to claim a tax deduction based on the fair market value, subject to local tax rules and substantiation requirements. Tax treatment varies by country and jurisdiction; in some regions, only certain types of in-kind gifts are deductible, and limitations or appraisal requirements may apply for larger gifts.

Advantages of in-kind giving include diversification of a nonprofit’s resource base, immediate impact through essential goods, and possibilities for donors to support programs aligned with their capabilities. Limitations can include valuation challenges, storage or logistics costs, and potential misalignment between donated items and a recipient’s needs.

Examples of in-kind donations range from medical equipment and clothing drives to donated professional services and gift-in-kind auctions. In-kind gifts are commonly used to complement monetary contributions and can enhance program reach when well coordinated with organizational needs.