What is an in-kind donation?

An in-kind donation is the transfer of a gift of goods or services (or some other non-cash asset that has value) to another person or organization.

Simliar to cash donations, in-kind donations made to a 501(c)(3) organization are tax-deductible. However, with in-kind donations, the donor must determine the cash value of the goods or services. That determination must be documented and provided to the IRS in order to receive the tax deduction.

Valuations of in-kind donations should be based on the fair market value of the goods or services.  They should be performed and/or provided by the donor or a third-party appraiser, not the recipient of the in-kind donation.  Valuations performed and/or provided by the recipients of an in-kind donation are not valid for donors to report as tax deductions to the IRS.

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