In-kind donations are non-monetary gifts given by companies and individuals to nonprofit organizations. When a business donates equipment or services to a charity, for instance, it is an in-kind contribution rather than a financial gift. Individuals often make in-kind contributions through organizations such as Goodwill and the Salvation Army.
People donate an array of items to charities, but nonprofits often seek certain items to operate their businesses. Computers, equipment, machines, supplies and service time are common in-kind company donations. People donate items like clothing, household items, toys, books, cookware and cleaning equipment.
Advantages of In-Kind Donations
Individuals and businesses donate in-kind items to preserve cash. A company needs to preserve cash flow for ongoing operations, but it may have excess equipment and supplies that it can part with. Another reason to donate items of value is that contributions to a 501(c)(3) nonprofit are often tax-deductible. Some limitations apply, but you can typically deduct the value of items you donate that are in good condition just as you can deduct cash contributions.