CCT: In-Kind Contributions

In-Kind Contributions


What is an In-kind Contribution?

An in-kind contribution is a gift of services or goods that your project or organization would have to otherwise buy if they hadn't been donated.  The fair market value of the goods or services you received are what you would have had to pay for it if it was not donated.  You should not record an In-kind donation unless it would otherwise have had to be purchased for the project or program.  In addition, in the case of donated professional services, the donor must possess the specialized professional skills being donated.  Examples of acceptable sources of In-kind contributions include: Professional Services; Using a donated space; Administrative services provided by host agency; Training for participants and staff; Public service announcements; Program Staffing and oversight.


How do In-kind contributions appear in my project or program budget?

It is wise to budget for and report In-kind contributions comprising donations of professional services or other goods and services when they can be adequately documented, since it gives a truer picture of what it takes to do what your organization or project does.  In-kind contributions must be a reflected in your budget.  It is extremely important to ensure that the In-kind expenses are budgeted as well as the In-kind income.  You should have a line item for "In-kind" in both the income and expense sections of your budget (In-kind income must equal In-kind expense).  For example, if you receive In-kind printing donation valued at $1,000., you will list "In-kind printing - $1,000" in the income section and list "In-kind printing - $1,000" in the expense section.  You may use the COA In-kind Budget Worksheet to detail all In-kind contributions to your project or program and enter the total from the Worksheet into your full budget.

How should I document In-kind contributions?

A service, good or facility donated to your project or program only counts as an in-kind donation if the contribution appears in the budget as an eligible project cost.  You documentation of In-kind contributions must ensure that the assigned value is reasonable, consistent, and is suitably allocated within your budget.  You must also document the basis you used for determining the value of the personal services, material or equipment, facility use or building contributed.  It is best to create an acknowledgement of the contribution which should include: a) the Name and signature of donor, b) Date and Location of donation, c) Description of item or service, and d) an Estimated value.  Keep a copy of the receipt in your files.


Additional In-kind contributions information:


Valuing In-kind contributions:

Content Last Modified on 9/6/2013 1:38:13 PM