Tax Deductible Monetary Donations and In-Kind Gifts

In general, any amount of money a person donates can be tax-deductible, provided that the donor is not receiving anything in return. A receipt must be given to a donor who gives anything $250 and over.

In-kind donations, however, are not always tax deductible or can be deducted only for the item’s designated Fair Market Value. In-kind donations work just like cash donations, except the value of the item given is determined by the donor based on a reasonable fair market price. Donation acknowledgements contain a description of what was given, but not a value.

In-kind donations can only be tangible goods where the ownership of the item can be transferred. Therefore, pro bono services and free/discounted rental space do not qualify as in-kind donations. In general, anything whose ownership cannot be transferred, a donation of space for a conference, for example, IS NOT tax deductible.

Note: Stock donation acknowledgements, like in kind donations, should not contain a dollar value. The value of a stock donation is determined by the donor, and your acknowledgement should only include the name of the company, number of shares donated, and the date. The donor should be able to get the value information they need from their broker or brokerage statement.