27 Apr In-Kind Donation
Posted at 05:46h in 0 Comments
An in-kind donation is a non-cash donation made to a 501(c)(3). These donations help nonprofit organizations in meeting their goals. Donors to a 501(c)(3) can claim a tax deduction for the value of the gifts that they make in certain circumstances.
What is an In-Kind Donation?
Nonprofit organizations play an important role in the US economy. According to the National Center for Charitable Statistics, there are more than 1.5 million nonprofits in the country. Many of them rely on donations to fulfill their mission. Nonprofits can accept donations in cash or in kind. In-kind donations may be made in several ways:
What does in-kind donation mean?
- Goods – food, clothing, equipment of various types, machinery, cars, books, and office equipment.
- Services – legal and accounting services, mentoring, tutoring, and other types of support.
Vision20/20 is a 501(c)(3) that provides free eye care to people who cannot afford to pay for their treatment. It raises funds from various sources that include individual as well as corporate donors. Green Ophthalmic Instruments Inc. is a regular donor. It provides Vision20/20 with in-kind donations in the form of Retinal Cameras and Ophthalmic Ultrasounds. This is an arrangement that benefits both the organizations. Vision20/20 receives free equipment and maintenance support while Green Ophthalmic Instruments Inc. gets public exposure for its charitable activity. The donor receives tax benefits as well.
Example of in-kind donation
In-kind donations are non-cash donations that help 501(c)(3) nonprofits meet their objectives. These donations could be in the form of goods or services.