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.
Important
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.
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.
Important
Only administrators and bookkeepers can enter in-kind donations.
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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Include relevant information in the Brief description box based on what type of item was received.
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For goods, include the quantity and condition. Examples: “2019 Toyota Corolla (used)” or “5 Spalding basketballs (new).”
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For services, include the hours when appropriate. Examples: “12 hours Professional Painting” or “Annual Tax Preparation."
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For securities, include the type, share quantity, and ticker where appropriate. Examples: “72 Shares of Stock (VTI)” or “One 30-Year Treasury Bond.”
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Enter the date the donation was received.
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Select a fund to which the donation can be attributed.
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Add an internal note. These notes are not visible to donors and are optional.
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.
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.
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Country |
Guidelines |
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United States |
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Canada |
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Enter the fair market value or the price the item would sell for on the open market on the contribution date.
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Provide valuation details, such as a note about when the item was appraised and who appraised it.
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If goods or services were exchanged for the donation, such as a ticket to a charity event, provide those details here.
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.
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.
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Country |
Guidelines |
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United States |
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Canada |
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Australia |
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New Zealand |
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You can edit the text of the acknowledgment letter to make it your own and add any necessary details about the donation.
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.
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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Delete the in-kind donation or edit the details and valuation.
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Send/resend an acknowledgment letter, change the donor, or edit or join the donor profile.
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Edit the donation's campus. This field auto-populates to match the donor's primary campus in People when the donation was entered.
You can view all in-kind donations on the In-kind tab of the Reports page. To view more information about a donation listed on this page or to resend an acknowledgment letter, select a donation from the table to view the donor's profile.
Important
Fair market value totals are not included in donation totals outside of the In-kind donations tab or a donor's profile.