What Is An In-Kind Donation?
In-kind donations, also known as gifts in kind, are non-cash donations like toys, books, and games. At Children’s Health ℠, these donations make a huge difference in the daily life and experiences of our patients, bring comfort and joy throughout their care journey. 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 items 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, which can vary by type or value of donation. In-Kind donations, or noncash contributions, are subject to specific IRS rules for both donors and recipient organizations. It is important to follow an organization’s instructions for in-kind donations in order to receive proper acknowledgements for charitable deduction requirements as appropriate.
Consult a tax professional and IRS guidelines like Publication 526
and Publication 561
for more details.
What to Consider Before Making an In-Kind Donation?
There are some considerations to make before making an in-kind donation:
Learn about an organization’s current needs and information about what they can and cannot accept.
Many organizations list their most needed items. Children’s Health updates lists for most-needed items for each campus quarterly (Needed items – Dallas (pdf), Needed items – Plano (pdf))
Amazon wish lists (see: https://give.childrens.com/ways-to-give/donate/gift-in-kind ) are also a great way to see current needed items, including for specific areas for an organization.
Different organizations have different guidelines about items they cannot accept. Children’s Health cannot accept these items (pdf).
At Children’s Health, for the safety of our patients, all items must be new, unused, in its original packaging and latex free. Battery-operated toys should have battery cases that secure with screws so that patients cannot pry them open. Any gift-wrapped items cannot be accepted.
Review an organization’s drop-off policies and scheduling guidelines prior to delivering. Institutions may have preferred drop-off times and locations to ensure donated items can be properly received, stored and distributed (include links to schedulers).
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, the goods 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 offered for free result in an in-kind contribution.
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
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 goods 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. Please contact
giftinkind@childrens.com for more information about gift cards.
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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