Make an in-kind donation to Father Joe’s Villages to provide critical items to neighbors in need and our programs that help them overcome homelessness.
What is a Corporate In-Kind Donation?
An ‘In-Kind” donation is a type of good or service that would otherwise need to be purchased by Father Joe’s Villages. With many programs operating throughout the year for our homeless neighbors in need, multiple purchases are necessary.
Providing an In-Kind gift to Father Joe’s Villages is an impactful way to support services that work to prevent and end homelessness. For example, they allow our programs to utilize cash donations in important and necessary ways by offsetting costs with your goods, services, or expertise.
What are some examples of in-kind goods or services that I can donate?
In-kind donations are valued in monetary terms and can still be written-off for tax purposes. At Father Joe’s Villages, we appreciate all donations and look forward to partnering with you to create the most significant impact on San Diego’s homeless crisis. Here are some of the items and services you can give.
Examples of In-Kind Goods:
- Special Event Silent/Live Auction Items
- Hygiene Kits
- Large Quantities of Food
- Venue/Office Space
Examples of In-Kind Services:
- Job Development Training
- Graphic Design
How Do I Make an In-Kind Donation to Father Joe’s Villages?
- Think about how your company could assist Father Joe’s Villages with goods or services that your organization specializes in.
- Fill out the Corporate In-Kind Donation Form – Click Here to Access the Form >>
- Send the Corporate In-Kind Donation Form back to email@example.com.
- A member of our Development team will contact you to coordinate.
Are My In-Kind Donations Tax Deductible?
Yes, you can deduct your in-kind donation from your taxes. To do so, the gift must be over $250. You’ll also need the acknowledgments that the non-profit provides to you. You’ll be able to make use of the deduction if you itemize your deductible expenses on IRS form Schedule A.
Why Make Corporate In-Kind Donations?
In-kind donations are a significant income source for non-profits with a handful of distinct advantages:
- They help nonprofits run their programs and activities for less money.
- They allow nonprofits to have more money for operating essentials, like services and staffing.
- They can save the non-profit the time of having to spend money to make purchases. If you’re donating your services, such as accounting or marketing, you can save the organization the effort of finding trustworthy individuals to work with.
How does a nonprofit determine the value of an in-kind donation?
When a nonprofit gets an in-kind donation, they document it as income by asking the donor to determine the fair value of the donation and marking down the receipt date. Fair value is how much you’d get if you sold the item or service donated. This can be done in several ways:
- Look up the price of the goods or services.
- Get quotes from businesses.
- Check websites to approximate the value of the labor donated.
Once the method of evaluation is determined, it must be used consistently and noted in financial statements.
What can be an in-kind donation to a non-profit?
Nonprofits have donation acceptance policies, so companies and individuals know what’s appropriate. These policies should be available online or in physical form.
These policies include:
- Whether the gift runs counter to the nonprofit’s stated goals.
- Whether the nonprofit can maintain the value of the donation. Examples: real estate.
- If gifts are accepted if these exceed or fall under a particular value threshold.
- What gifts are and are not appropriate.
- What’s done with rejected gifts.
- Whether or not the nonprofit will conduct a review or seek legal advice based on the type of gifts given, such as expensive vehicles or artwork.
- Whether or not gifts may be given anonymously.
What happens when you make an in-kind donation?
Nonprofits have processes in place for what to do when in-kind donations are received.
Written agreements are often used if the donation is meant to be used toward a particular goal, like disaster relief or specific activities, or if the gift comes with complicated or particular criteria set by the donor.
These agreements, while not legal documents, can be helpful if there are any conflicts.
Oftentimes, a nonprofit will use a form when the donation is made or scheduled. Donors should expect to provide:
- A detailed description of what was donated.
- If the items donated were used before the donation, how old is the item, and what sort of shape is it in.
- The date the donation was received by the nonprofit.
- Contact info.
- The estimated fair market value of the donation and how the estimate was made.
When you make your in-kind donation, the non-profit will fill out a gift receipt form. These show the donor that their gift was meaningful. It’s also needed when the donation was greater than $250 to be claimed as a tax deduction.
- The gift receipt will include:
- The nonprofit’s and donor’s name.
- A declaration that the nonprofit is recognized as tax-exempt by the IRS under section 501(c)(3) because it’s a charity.
- A declaration that the donation was made without any goods or services provided in exchange.
- If goods or services were provided in exchange for the donation, then a description and good faith estimate of the value is provided.
While not required, nonprofits will acknowledge the fair value of the donation as determined by the donor. They may say, “Thanks to your donation, we didn’t have to spend $2,000 to buy your item.”
Acknowledgments may be provided after every gift is made or annually. Either way, expect an email, letter, or both from the nonprofit thanking you for the donation.
Can an in-kind donation qualify toward a matching gifts program?
A matching gifts program is when an employee makes a donation that’s then matched by the company. Read our article here for more information about in-kind donation matching gifts and other types of matching gift programs.