When you think about donations, you probably think about cash contributions that help you raise more funds. There’s another type that can be effective in a different way, and these can come in the form of in-kind donations. Almost every organization will have received in-kind donations. Until now, you may have simply waited for these to come to you, rather than actively reaching out for them. In-kind donations can help your organization cut costs and make better use of the funds you raise, but they’re often overlooked as a form of fundraising.

1. How to Get the
Most From In
Kind Donations
WWW.DONORBOX.ORG

2. In-kind donations can be
attractive for donors too
since they’re a viable
alternative to making a cash
donation and can have a
significant impact on your
cause
In-kind donations can help
your organization cut costs
and make better use of the
funds you raise, but they’re
often overlooked as a form of
fundraising

3. WHAT ARE IN-KIND
DONATIONS?
In-kind donations are services or goods/products
that are offered to your organization free of charge
instead of a cash donation. They can be physical,
tangible items, or intangible items such as time or
skills

4. A designer creating your organization’s website for free or a
marketing expert taking care of your branding pro bono
A company donating office equipment or computer hardware
or software that your team members can use
A venue allowing your nonprofit to use their facilities to host a
fundraising event without a hire charge
Donations of prizes for raffles, auctions/silent auctions, and
other fundraising activities
EXAMPLES
In-kind donations

5. THE BENEFITS OF
IN-KIND DONATIONS
Securing in-kind donations can have numerous
benefits for your organization
In-kind donations are also
less likely to be dependent
on company budgets
You can reduce some of
the total costs of
delivering programs,
holding fundraising
events, or capital projects
if you can receive in-kind
donations that bring the
overall budget down

6. HOW TO SECURE
IN-KIND DONATIONS
Think about the type of products or services that
your organization needs and what you can offer to
in-kind donors in exchange for their contribution.
This is particularly important if your organization is
approaching potential sponsors for in-kind
sponsorship or partnerships
You can promote your
desire for in-kind donations
in the same way as cash
donations by getting it out
there on your organization’s
website, social media
channels, and donor
communications
Check that you’re reaching
out to companies or
individuals whose values
align with your
organization’s

7. BEST PRACTICES FOR
RECEIVING IN-KIND
DONATIONS
Before you accept an item, make sure you’re very
aware of its history and any potential health and
safety concerns — especially if they’re not brand
new, and they’ll be passed onto the beneficiaries of
your cause
Issue in-kind donors with a
receipt, as you would do
with a cash donation. This
makes it a lot easier at tax
time, especially if the donor
is likely to try to deduct the
contribution
Assess the impact of in-kind
donations and the effect
they have on your mission
and work

8. HOW TO REPORT
IN-KIND DONATIONS
Before you do this, you’ll have to come up with a
“fair value” of the in-kind donation based on the
market value. To make things easier, this can be done
on the day of receipt
The first question to ask is
whether your nonprofit’s
accounting is following
Generally Accepted
Accounting Practices
(GAAP)
Assess the impact of in-kind
donations and the effect
they have on your mission
and work

9. IN-KIND
DONATIONS AND
YOUR NONPROFIT
ACCOUNTS
When you’re recording in-kind donations, include
the following information
A brief description of the in-kind contribution
The date you received it
Contact information for the donor
The fair market value of the in-kind contribution

10. THANKING YOUR
IN-KIND DONORS
After your organization receives an in-kind donation,
thank the donor for their generosity. This helps to
show your gratitude and can build a good
relationship with a new donor
A handwritten thank you
note can work great for this.
Demonstrate the impact of
the contribution

11. OVER TO YOU
In-kind donations can be a great way to build
stronger relationships with donors who may not be
in a position to support your organization with a cash
donation. They’re also an effective way to reduce
your organization’s costs so you can make your
budget go further.

12. READ THE
ENTIRE BLOG
https://donorbox.org/nonprofit-
blog/in-kind-donations/