• News
  • Technology
    • Smartphone
    • Apps
    • Gaming
    • Social Media
  • Business
  • Entertainment
  • Science / Health
Facebook Twitter Instagram
Subscribe
zSHAREzSHARE
Facebook Twitter Instagram YouTube LinkedIn RSS
  • News
  • Technology
    • Smartphone
    • Apps
    • Gaming
    • Social Media
  • Business
  • Entertainment
  • Science / Health
zSHAREzSHARE
zSHARE » News » What’s So Great about Inkind Donations?
News

What’s So Great about Inkind Donations?

Anna BiddleBy Anna BiddleJune 12, 2022Updated:June 12, 2022No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email
What’s So Great about Inkind Donations?
Share
Facebook Twitter Pinterest Reddit WhatsApp Email

In-kind donations provide nonprofit organizations with a variety of benefits. For example, they can fix up cars to give them away to families or auction them off to raise money. These donations provide a unique way for supporters to give to nonprofits while making giving more accessible. But are in-kind donations all that great? Let’s take a look. Read on to learn more. And don’t forget to consider your organization.

Inkind donations are a more straightforward way for businesses to give.

Accepting Inkind Donations from businesses is a more convenient method of giving. Many companies donate goods and services in exchange for a tax deduction, which can help offset the donation cost. An example is when a certified electrician offers to repair a circuit breaker in the church administration office. Typically, this service would cost several hundred dollars through an outside contractor, but Bob offers to do the work for free because his materials and labor costs are minimal.

In-kind donations come in many different forms, including physical goods and intangible services. Donors often donate equipment, supplies, and even samples. Some businesses can also donate extra inventory or clear out storage spaces for their in-kind donations. These contributions are more accessible to track and record than other donations. A nonprofit accountant can help companies correctly record their in-kind donations and keep track of the tax deduction.

For businesses, in-kind donations are a more straightforward way to contribute than cash. Donated goods and services are a valuable source of revenue for nonprofits, especially if they are central to their mission. Businesses can also lend their employees to nonprofits for a fee to perform these tasks. By doing so, they free up cash to pay for essentials and programs. You will never know when a nonprofit might need a hand.

They increase revenue for nonprofits.

You’re probably familiar with in-kind donations if you’re involved in fundraising. These donations are gifts in kind, a fancy saying “donate money.” Donating money is great for nonprofits because it increases revenue, but some drawbacks. For example, it may add additional reporting work or create headaches over where to store donated items. So, how do you make the most of in-kind donations?

First, it’s essential to understand how in-kind donations affect nonprofit accounting. Nonprofits that are dependent on in-kind donations must be able to comply with federal tax reporting requirements and GAAP. Failure to do so may lead to the revocation of their tax-exempt status. To ensure compliance, nonprofits should keep accurate records and ensure that they are filing the required tax returns. In this way, in-kind donations can help nonprofits grow their organizations while staying within their accounting regulations.

Donors can also save money by deducting the fair market value of the in-kind donation when filing taxes. While in-kind donations often result in lower taxes, it’s worth considering the community’s needs and how it’ll benefit from the goods. A free company car or other donated car can help a new nonprofit get its mission off the ground quicker. So, consider in-kind donations for nonprofits when you’re planning your next fundraising event.

They take up space in your office.

If you run a nonprofit, you may find that in-kind donations take up space in your office. Many nonprofits cannot find room for their goods, so they pay for storage. In such cases, it makes sense for nonprofits to post a list of the items they need and welcome donors to donate those items. However, a nonprofit may be limited in its budget and space, so it is wise to publish a list of acceptable in-kind donations so that donors can contribute the items they need.

Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
Previous ArticleHow to Play Games Online Platform?
Next Article Is it necessary for your business to employ a digital accounting system?
Anna
Anna Biddle
  • Tumblr

Editor-in-Chief at zSHARE, exploring SaaS and more. Contributor at The Next Web, and Forbes.

Subscribe to Updates

Get the latest Tech news and events right to your inbox.

zSHARE on Google News
Latest News
Surprising Benefits of Group Therapy for Recovery
July 3, 2025
Factors That Affect Borrowing Limits
July 3, 2025
5 Ways Virtual Prototyping is Transforming the Future of Product Development
July 2, 2025
Yerkin Tatishev and Kusto Group Open Hotel in Tbilisi
July 2, 2025
How Andi Sklar Inspires a Culture Shift in the Healthcare Industry
July 1, 2025
The Real Estate Renovation Bubble: Why Smart Investors Are Pivoting to As-Is Acquisitions
July 1, 2025
💫 From Trauma to Triumph: How Hypnosis is Redefining Healing
June 30, 2025
Understanding Desogestrel: What to Know About the Mini Pill for UK Users
June 30, 2025
zSHARE
Facebook Twitter Instagram Pinterest LinkedIn RSS
  • Contact Us
  • About Us
  • Authors
  • Privacy Policy
zSHARE © 2025

Type above and press Enter to search. Press Esc to cancel.