Yes, you can accept in-kind donations for the purposes of your project. An in-kind or non-cash contribution is just as valuable as cash if it is something your project needs and you would otherwise have to spend project funds to obtain. Gifts of furniture, computers, copy machines, and other kinds of office and technical equipment can be very useful to your project and can save you money.
Here are the steps to accepting an in-kind donation:
- Accept the item from the donor.
- Complete an In-Kind Contributions form with the name and address of the donor and a detailed description of their in-kind gift (make, model, serial number, etc.).
- Community Partners will thank the donor via an acknowledgement letter.
Please note the following:
- Neither the project nor Community Partners should state a value of the gift. It is up to the donor (and their accountant) to determine the value of the gift for tax purposes.
- Community Partners does not charge the 9% administrative fee for in-kind gifts.
- Community Partners will not issue a tax receipt for donations of services. Tax receipts can only be issued for donations of tangible items.
- Community Partners can only accept in-kind donations of cars through our Vehicles for Cash program. Please note that the project will not receive the actual car, but rather a cash donation for the value of the car.
- Community Partners does not allow donations of vehicles for your project’s use, since such vehicles can then only be used for project business (no personal use), and the ongoing project expenses associated with owning the vehicle (including insuring, licensing, garaging, operating, and maintaining) are costly and unpredictable.
- Because gifts of real estate often come with certain risks, possible hazards (including toxics), hidden encumbrances, tax liability, and other obligations, Community Partners staff must review them on a case-by-case basis before accepting them on behalf of your project. Please contact your program liaison to discuss gifts of real estate.
In-kind contributions – like contributions of cash – become project assets administered by Community Partners. When accepting any asset as a gift, Community Partners accepts the duty “to protect and preserve” that asset for charitable purposes. Community Partners cannot accept any gift that is encumbered by debt in any way. Unless sufficient funds have been specifically set aside in your project account, you cannot accept a gift that is damaged, in need of extensive repair or overhaul, or otherwise does not fulfill the function for which it was created.
Because of the many issues associated with in-kind donations, you should always consult with your program or finance liaison before suggesting to donors that they make a gift of furniture, equipment, or other tangible personal property.