In-kind Donation: giving goods or services instead of money

Definition

An in-kind donation is support given as something other than money: products, equipment, office space, or professional services and expertise (overlapping with skills-based volunteering).

For reporting and impact purposes, in-kind contributions are usually assigned a monetary value, so they can be tracked alongside cash giving and included in total community investment.

Donations
Published on
August 5, 2026
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What is an in-kind donation?

An in-kind donation is a charitable gift of goods or services rather than money. A company might donate products, equipment, office space or professional expertise to a nonprofit, contributing something of value without any cash changing hands and without expecting a commercial return.

It is a genuine donation, defined by the absence of a quid pro quo. The company gives because it wants to support the cause, not because it is buying anything, which is what places in-kind donations firmly within charitable giving rather than commercial arrangements.

How is it different from an in-kind sponsorship?

This is the distinction most worth drawing carefully. An in-kind donation is a charitable gift with nothing expected back. An in-kind sponsorship is a commercial exchange: the provider supplies goods or services and receives rights and visibility in return.

The dividing line is the presence of a return. If a company donates equipment purely to help a cause, it is an in-kind donation; if it supplies the same equipment in exchange for sponsorship benefits, it is an in-kind sponsorship. The goods may be identical, but the arrangement, and how it is treated and reported, is not.

Why assign a monetary value to in-kind donations?

For accounting and reporting, in-kind donations are given a monetary value so that non-cash contributions appear in a company's total giving. A substantial gift of goods or expertise is real value delivered, and leaving it out understates what the company actually contributed.

Valuation is where in-kind donations need care. Because there is no invoice, the fair market value of the goods or services has to be estimated on a clear, documented basis, both for honest reporting and because tax treatment, where it applies, depends on a defensible valuation.

Recording in-kind donations in a platform

A grant management software platform records in-kind donations with their assessed value alongside cash gifts, so a company's corporate giving total reflects everything it contributed, not only the money, and each donation carries a documented basis for its value.

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FAQ

Frequently Asked Questions

What is an in-kind donation?
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How is it different from an in-kind sponsorship?
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Why assign a monetary value to in-kind donations?
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How should in-kind donations be valued?
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Related terms

The newest terms we've added, the words teams managing grants, sponsorship, and CSR come across most often.

Donations

Restricted Funds

Restricted funds are donations a donor has earmarked for a specific purpose, project or time period, which the recipient may use only as designated.

Distinguishing restricted from unrestricted funds is fundamental to compliant accounting and reporting, since misusing earmarked money breaches the donor's terms.

Donations

Pledge

A pledge is a donor's formal commitment to give a specified amount, sometimes over several years, before the funds are actually transferred.

Tracking pledges against payments received is essential for accurate forecasting and reporting, so an organisation knows both what has been promised and what has arrived.

Donations

Gift Acceptance Policy

A gift acceptance policy sets out which donations an organisation will and will not accept, and under what conditions, covering issues such as donor due diligence, restricted gifts and reputational risk.

A clear policy protects the organisation from problematic funding and gives staff a consistent basis for evaluating and recording every gift.

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