What Is An In-Kind Donation? A Giving Guide for Nonprofit Supporters

In-kind donations, also known as gifts in kind or in-kind contributions, are non-cash donations like goods and services provided to nonprofit organizations.

At Children’s Health ℠, these donations are just as impactful as monetary gifts inhelping distract patients during medical procedures and create playful, healing moments throughout their care journey.

For example, if a donor provides a large number of art supplies, Children’s Health can use them to support creative therapy programs, helping children express themselves and find comfort during their hospital stay. Contributions large and small continue to make a difference in the lives of our patients and families.

What are the Different Types of In-Kind Donations?

In-kind donations fall into three main categories: goods, services and expertise. Basically, they are gifts that aren’t money.

Goods

An in-kind donation of goods refers to the contribution of materials or assets (typically physical) that nonprofits can use to enhance some aspect of their work. Some common examples include:

• Light up musical toys

• Books (board books, picture books, graphic novels, YA fiction)

• Boar soap, body wash

• Feminine Hygiene products

• Batteries

• Game systems

• Clothing (t shirts, underwear, socks, etc.)

• Fidget Toys

• Games (Uno, playing cards, board games)

• Action Figures, dolls, Barbies

• Stress Balls

• Play-Doh

Services

Some individuals or organizations may choose to contribute their time and expertise to perform a service or volunteer in kind services to make a hand-crafted items. Children’s Health is always in need of crafty community members to hand craft items needed for our patients. Some examples include:

• Beads of Courage Bags

• Blankets for kids

• Positioning aid cover for NICU

• G-tube pads

Expertise

An expertise donation refers to when a professional lends advice to an organization for free. This advice could include tax advice, event planning or another form of knowledge. The best way to give this in kind contribution at Children’s Health is to join our Advisor Advocacy Alliance. This network of dedicated advisors represent some of the most mission-centric community advisors from the following areas:

• Banking

• wealth management

• financial and tax advising

• law

• investment

• other client-based industries

Benefits of In-Kind Donations

In-kind donations make a meaningful difference for nonprofits of all sizes. These contributions help provide essential goods and services allowing resources to be allocated to other vital programs. In the following sections, we’ll explore the impact of in-kind donations on both recipients and donors, highlighting how these gifts make a difference in the lives of many.

Benefits of In-Kind Donations for Nonprofits

In-kind donations help nonprofits like Children’s Health access items that directly impact the communities we serve. These in-kind donations help nonprofits go above and beyond for their communities and free up resources to be directed toward services and programs. Benefits for nonprofits include:

• Reduced operational costs – in-kind donations provide significant cost savings by reducing the need for nonprofits to purchase goods or pay for services on their own. By accepting not for profit donations of items like toys, clothing and books, organizations, like Children’s Health, can stretch their budgets further allocating more funds toward core programs.

• Increased Program Capacity – in-kind donations directly contribute to the success of nonprofit programs by providing the necessary goods and services that support operational needs.

• Access to expertise – professionals who lend advice to nonprofits also provide significant cost savings by reducing the need for the organization to pay for these services. Not only does it save money, it allows professionals to give back to organizations that they care about.

Benefits of In-Kind Donations for Donors

In-kind donations allow people to give even when it’s challenging to donate money, by contributing unopened items they may already have at home (such as toys, crafts and board games). These donations can often be used immediately, bringing comfort and joy to patients and families. They also free up hospital funds to be directed toward vital programs and services, ensuring that every donation has a meaningful impact.

Flexibility – for donors, in-kind donations provide flexibility in giving, allowing those who may not have cash to contribute their time, skills or goods. These donations provide donors with a wider range of options to contribute in a way that is still meaningful to the donor.

Community engagement – Donating in-kind allows donors to directly connect with the nonprofit and its beneficiaries, fostering a sense of community involvement.

Tax Advantage – donations of property (not services) are often tax-deductible, providing a financial incentive for donors.

Tax Deductible Benefits of In-Kind Donations

In-kind gifts can be tax deductible if they meet specific requirements. The IRS views an in-kind donation as a contribution and calculates it according to its market value. Donations to registered 501(c)(3) nonprofits are eligible for a deduction.

In-Kind donations, or noncash contributions, are subject to specific IRS rules for both donors and recipient organizations. The IRS rules for in-kind donations include:

• ensure the nonprofit is qualified

• get proper documentation

• determine the Fair Market Value

• be prepared to file the appropriate IRS forms (8283)

Consult a tax professional or IRS publications like Publication 526 and Publication 561 for more details.

What In-Kind Donations Does Children’s Health Need?

In-kind donations help to support staff, patients and families of Children’s Health. Gifts in kind directly support our patient families by offering resources like games, toys, books and personal amenities, all of which help make life better for children.

These items bring joy and comfort to patients, helping to celebrate milestones, offer play and distraction and make the hospital environment as comfortable and enjoyable as possible.

Children’s Health is always in need of certain items at our Dallas (pdf) and Plano (pdf) campuses. The most urgently needed items are:

• Stress balls

• Bubbles

• Pop its

• Play-Doh

• Legos

• Markers

• Teethers

• Rattles

In-Kind Donations Needed by Children’s Health

Check out our most needed items for our Dallas (pdf) and Plano (pdf) campuses. Generally, we are always in need of:

• Light-up musical toys

• Teethers and rattles for sensory development

• Popular board games

• Batteries of all sizes for powering toys and devices

• Crayons, markers, and individual art kits for self-expression

• Travel-sized toiletries (body wash, shampoo, deodorant) for families in need

What to Consider Before Making an In-Kind Donation?

There are some considerations to make before making an in-kind donation:

• Read the donations and distribution policy of our non-profit organization, Children’s Medical Center Foundation. This helps donors know what items we can and cannot accept.

  • For example, for the safety of our patients, all items must be in new, unused, in its original packaging and latex free.

• Check out the many Children’s Medical Center Foundation Amazon wish lists to see the current needed items.

• At Children’s Medical Center, in-kind gifts ordered through Amazon will ship directly to the campus and program of your choice.

• The Foundation also updates lists for each campus of our most-needed items on a quarterly basis:

  • Dallas campus (pdf)

  • Plano campus (pdf)

Give In-Kind to Children’s Medical Center Foundation

Visit our gift-in-kind page to see more details about our program or schedule your in-kind donation at our Dallas or Plano campus.