In-kind donations are the donation of a physical good to an organization. For tax purposes, the fair market value of the donation should not be counted as donation income, and must be tracked in a separate field.
- An in-kind donation's Amount is always $0.00. The value of the donation should be tracked using the Fair Market Value field.
- An in-kind donation must be entered by a system user; it cannot be created from an online form.
- An in-kind donation is a one-time donation, it cannot be recurring.
- An in-kind donation cannot be split.
Navigate to Fundraising > Add Donation. Check the toggle to change it from not in kind to In-Kind. When selected, the Amount field becomes no longer required. If you do enter an amount, it will be transferred to the Fair Market Value field on the next page.
On the Payment Method screen, you will see that the tender type In-Kind is selected and disabled. If you need to select a different tender type, click the Back button and turn off the In-Kind Donation toggle.
On the payment page, the Amount field will be set at $0.00. You can enter a Fair Market Value for this donation. Click Submit Payment.
On the account detail page for an account that has made an in-kind donation, you will see the record of a donation with an amount of $0.00, a status of SUCCEED, and a note that indicates the fair market value of the donation.
It is possible to add a soft credit to an in-kind donation.
In this case, the Soft Credit Amount will be applied or calculated based on the Fair Market Value of the donation, rather than the Amount.
The Fair Market Value an available search field and output column in the following reports:
- Mailing Report
- All Accounts Report
- Email Audience Report
- Donation Detail Report
- Honor/Memory Donations Report
- Transaction Report
- Payment Report
Searching for Fair Market Value in a donation report along with Tender Type: Equal In-Kind.
<<Fair Market Value>> is an available token for Donation Appreciation System Emails & Letters.
You can easily create a condition for donations with In-Kind as the tender type. Learn about conditional system emails & letters here.