An in-kind donation is a non-cash contribution of goods or services to a charitable organization, which can be used to further the organization's mission or reduce its expenses. These donations are valued at their fair market value and can provide tax benefits to the donor while fulfilling critical needs for the recipient organization.

In-Kind Donation

Non-Cash Contribution

Goods or services

A charitable organization is a non-profit entity that operates to provide social, educational, religious, or other forms of public benefit without the intention of making a profit. These organizations rely on donations, grants, and volunteers to support their mission and are often granted tax-exempt status by governments.

Charitable Organization

Organization's mission

Reduce its expenses

Fair market value is the estimated price at which an asset would change hands between a willing buyer and a willing seller, both having reasonable knowledge of the relevant facts and neither being under any compulsion to buy or sell. It reflects the asset's value in a competitive and open market, ensuring transactions are conducted fairly and equitably.

Fair Market Value

Tax benefits are government incentives that reduce the amount of tax owed by individuals or businesses, encouraging certain behaviors or supporting economic policy objectives. They can take various forms such as deductions, credits, exemptions, or preferential rates, and are often used to promote investments, savings, and social welfare activities.

Tax Benefits

A donor is an individual or entity that voluntarily provides resources, such as money, goods, or time, to support a cause, organization, or individual in need. Donors play a crucial role in philanthropy and fundraising, often motivated by altruism, social responsibility, or personal connections to the cause.

Concepts

Relevant Degrees

Your Lessons