What Is An In-Kind Donation?
In-kind donations, also known as gifts in kind, are non-cash donations like toys, books, and games. In-kind gifts are another way to make life better for children at Children’s Health ℠. In-kind donations are used as special items for celebration and activities that distract children from procedures, that normalize the hospital experience and more. Contributions large and small continue to make a difference in the lives of our patients and families.
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 us go above and beyond for our patients and free up resources to be directed toward services and programs.
Benefits of In-Kind Donations for Donors
In-kind donations are valuable because:
In-kind donations allow people to donate to us even when it’s challenging to give money (e.g., donating toys, crafts and board games)
Donors can see the immediate impact of their donations
In-kind donations can typically be used immediately
In-kind donations free up funds to use for our programs and services
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
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 new, unused, in its original packaging and latex free.
Check out the many Children’s Health Amazon wish lists to see the current needed items.
In-kind gifts ordered through Amazon will ship directly to the campus and program of your choice.
Lists for each campus of our most-needed items are updated on a quarterly basis.
Frequently Asked Questions About In-Kind Donations
What is the difference between a donation and an in-kind donation?
Gifts in kind, also referred to as in-kind donations, is a kind of charitable giving in which, instead of giving money to buy needed goods and services, the goods and services themselves are given (most often these are tangible items). Gifts in kind are distinguished from gifts of cash or stock.
A donation is a monetary gift to a nonprofit.
Can cash be an in-kind donation?
No, an in-kind contribution is a non-monetary contribution. Goods are services offered for free or at less than the usual charge result in an in-kind contribution. Similarly, when a person or entity pays for services on the committee’s behalf, the payment is an in-kind donation.
What is an example of an in-kind contribution?
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. These can include:
Toys
Clothing
Consulting services
Hand-made crafted items like no-sew blankets
What is an in-kind donation letter?
In in-kind donation letter is a document used by a nonprofit to acknowledge and document the receipt of non-monetary donations like good or services, from a donor. It confirms the donation and often includes an estimated fair market value for the donation. This letter is important for both the donor and the organization for tax and record-keeping purposes.
Why it’s important:
For the Donor: the letter allows the donor to claim a charitable deduction for their donation on their tax return, which requires documentation.
For the organization: the letter provides a record of the donation which is needed for tax purposes and record keeping.
Are in-kind donations tax deductible?
Generally, yes. A donor may deduct an in-kind donation as a charitable gift.
Are gift cards considered in-kind donations?
Yes. In-kind donations can be gift cards; however, there are certain guidelines on how and when gift cards can be accepted and distributed for use.
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.
Kids count on us. We count on you.
Give to support innovative research, lifesaving treatments and compassionate care.
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