What Is a In-Kind Donation?
An in-kind donation is a non-cash donation to a 501(c)(3) charity. People can make two different types of contributions to a 501(c)(3) charity: cash donations or in-kind
donations. A cash donation is a transfer of funds to the organization. An in-kind contribution includes all other types of donations.
When a nonprofit organization receives an in-kind contribution, the charity records the gift as revenue. To determine the amount of revenue, the charity must value
the in-kind contribution at its fair market value on the date of the donation.
Types of In-Kind Contributions
In-kind donations include goods or services, other than cash transfers. For example, in-kind donations include products such as computers, furniture, clothing, or
office equipment. Services include donating meeting space, transportation, copying services, or administrative services.
You can also donate expertise to a charity, such as providing legal or accounting services. Finally, you can give cash equivalents, such as stocks or bonds. All of these gifts
constitute in-kind contributions.
Taxability of In-Kind Contributions
For individuals making in-kind contributions, donors can take a tax deduction for the fair market value of the donation. However, donors cannot deduct for any time or
services contributed to a 501(c)(3) organization. The donor can only deduct the cost of any out-of-pocket expenses for which the donor has receipts.
The charity cannot provide the donor with the fair market value of the in-kind donation. Determining the value of the donation is the responsibility of the donor.
If you have an item that you would like to donate, please call 435 590 1661. The donation committee will respond within 10 business days.
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