In-Kind Donations

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Sometimes, a donor wants to give something other than a monetary donation. These donations are commonly referred to as in-kind donations and often include physical items for your church, services, or stock contributions. 

Enter in-kind donations into Giving to track these gifts, send an acknowledgment letter to your donors, and include them on statements.

Notice

The information in this article is not advice. If you have any questions about a donation's legal or tax implications, always contact a licensed accountant—preferably one who specializes in working with non-profits.

Enter an In-Kind Donation

When you receive an in-kind donation, enter the details in Giving to keep track of the gift and provide the donor with an acknowledgment that it was received.

To enter the donation on the Donations tab of a donor's profile, go to the In-Kind Donations tab and select New in-kind donation.

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Notice

Only administrators and bookkeepers can enter in-kind donations.

Include Item Details

Entering item details for an in-kind donation is the most crucial step. This information should be specific and accurate. The description, date received, and fund are included in a donor's statement when generated.

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  1. Include relevant information in the Brief description box based on what type of item was received. 

    1. For goods, include the quantity and condition. Examples: “2019 Toyota Corolla (used)” or “5 Spalding basketballs (new).”

    2. For services, include the hours when appropriate. Examples: “12 hours Professional Painting” or “Annual Tax Preparation."

    3. For securities, include the type, share quantity, and ticker where appropriate. Examples: “72 Shares of Stock (VTI)” or “One 30-Year Treasury Bond.”

  2. Enter the date the donation was received.

  3. Select a fund to which the donation can be attributed.

  4. Add an internal note. These notes are not visible to donors and are optional.

Enter Valuation

After entering the item details, you have the option to add valuation information for the donation. Valuation guidelines vary from country to country according to each governing body's requirements, so refer to the table below to learn more about the guidelines for your country. 

Important

In Giving, the fair market value will only appear on the In-Kind tab of the Donations page and donor profiles. That value will not be added to reports or pledge totals. 

Country 

Guidelines 

United States

  • Exact dollar amounts cannot be included on an acknowledgment letter or tax statement. Valuations added are for admin use only and are not donor-facing.

  • Refer to the IRS Publication 526 for more information regarding charitable contributions.

Canada

  • The fair market value must be included if an acknowledgment letter is provided to the donor. 

  • If the fair market value is expected to be more than $1,000, the Canada Revenue Agency (CRA) strongly recommends that a third party professionally appraise the property.

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  1. Enter the fair market value or the price the item would sell for on the open market on the contribution date.

  2. Provide valuation details, such as a note about when the item was appraised and who appraised it.

  3. If goods or services were exchanged for the donation, such as a ticket to a charity event, provide those details here. 

Note

Depending on your country, valuation details may not appear on donor statements, acknowledgment receipts, or in Church Center. Look for these notes in the valuation step of the in-kind donation modal.

Notice

Default tax disclaimers are listed on the Settings tab of the Manage page in Giving. A Giving administrator can update these disclaimers to best fit your needs.

Send an Acknowledgment Letter

The last step in entering an in-kind donation is sending an acknowledgment letter to the donor via email. This letter serves as both a way to express gratitude to the donor and as a tax receipt. 

Each country has specific guidelines for the information that should and should not be included in an acknowledgment letter, according to their governing bodies. Most countries require a tax disclaimer stating that no goods or services were exchanged. 

Refer to the table for additional guidelines for your country.

Country 

Guidelines 

United States

  • Donors must obtain an acknowledgment letter to claim a tax deduction.

  • Each acknowledgment letter must include your organization's name and address, item description (but not value), and the date and location of the donation.

Canada

  • If the donor is claiming an in-kind donation on their taxes, they must have an official tax receipt for each donation.

  • Refer to the CRA donation receipt guidelines for more information on what should be included on each acknowledgment letter/tax receipt.

Australia

  • Giving does not support tax-deductible donations in Australia at this time. 

  • Let our support team know if you have a need for tracking tax-deductible donations!

New Zealand

  • Donors are required to provide an acknowledgment letter/tax receipt for every donation they want to claim. 

  • Refer to the Inland Revenue Department (IRD) guidelines for information on what must be included in a donation receipt.

You can edit the text of the acknowledgment letter to make it your own and add any necessary details about the donation. 

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Acknowledgment letters do not need to be sent when the in-kind donation is entered. Donations will still appear on donor profiles and statements, even if the acknowledgment was not sent. 

You can send an acknowledgment letter later by selecting the donation from the In-Kind Donations tab of a donor's profile or the Reports page.

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In-Kind Acknowledgment Letter Sample

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Edit an In-Kind Donation

Changes can be made to a previously entered in-kind donation by selecting the donation from the In-Kind tab on the Donations page or the In-Kind Donations tab of a donor's profile. 

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  1. Delete the in-kind donation.

  2. Edit the in-kind donation details. Adjust the item details and valuation information here. 

  3. Send an acknowledgment letter to the donor or resend the email.

  4. Change the donor for the in-kind donation.

  5. Edit the donor's profile information.

  6. Join the donor with another donor to provide them with joint statements and donation history.

  7. Edit the donation's campus. This field auto-populates to match the donor's primary campus in People when the donation was entered.

In-Kind Donation Reports

You can view all in-kind donations on the In-Kind tab of the Reports page. Use filters to track in-kind donations within a set time frame or to specific funds.

Important

Fair Market Value totals are not included in donation totals outside of the In-Kind tab. 

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In-Kind Donations and Statements

In-kind donations received during a statement's date range are included on donor statements automatically. 

Notice

In-kind donations are not included in official CRA tax receipts. Acknowledgment letters serve as official CRA tax receipts for these types of donations.

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