What is an In-Kind Donation?

Definition: In-kind donation, also called gift in kind, refers to the provision of goods or services to an organization, such as office equipment, computers, and software or administrative and financial support.

What Does In-Kind Donation Mean?

What is the definition of in kind donation? Large corporations and businesses are the most common source of in-kind donations for non-profit organizations, and their charitable giving is not the money to buy the required goods or services, but the goods and services themselves. In-kind donations are valued in monetary terms, and they should be recorded on a company’s budget for a value equal to the value of in-kind gifts the non-profit organization receives.

For instance, if a company receives an in-kind donation of computer equipment for $15,000, it should record an in-kind income of $15,000 and an in-kind expense of $15,000 on its budget. However, often businesses fail to recognize an in-kind donation properly.

Let’s look at an example.


Senior Care is a community senior center located in Boca Raton, FL. The manager is drafting an in-kind donation letter for a local corporation, asking for funding.

Senior Care Center
6320 Via Tierra Drive,
Boca Raton, FL, 33433
Phone: 561-487-3575
Email: mark@seniorcare.gov
Website: www.seniorcare.org

Mr. Alex Coverdale
Corporate Giving Officer
Coverdale Restaurant Equipment Corporation
418 South Dixie Hwy,
Boca Raton, FL, 33433
Phone: 561-361-8535

Dear Mr. Coverdale:

One hundred fifty-eight out of the 425 people that we accommodate in the center are over the age of 70 and, unfortunately, living below the state poverty level. In the majority, these people receive their meals through our meals program and are unable to survive on their own means. In addition, in 2016, we experienced an increase of 8% in the number of adults living below the state poverty level.

Currently, our senior center serves nearly 400 meals daily (breakfasts and lunches) with the help of ten full-time staff and more than 150 volunteers and from our neighborhood and the neighboring areas.

Senior Care operates 8 am – 7 pm from Monday to Saturday, and it greatly contributes to the underserved senior population of Boca Raton. However, given the scarcity of resources, we would be interested in an in kind-donation of a cooker and refrigerator manufactured by your company.

If you decide to help Senior Care, your contribution will be much more than the equipment. You will be a major partner in offering a healthy life to 400 senior citizens each week.

Hoping for your partnership,

John Philips,
Executive Director
Senior Care Center

Summary Definition

Define In-Kind Donation: Gifts in kind mean a contribution of an asset other than cash.