Animal Welfare Professionals

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  • 1.  Acknowledging In-Kind Donations

    Posted 01-28-2025 02:49 PM

    I'm looking for examples of descriptions of in-kind donations for tax letter purposes. For example, if someone donated dog food to your organization, how would you describe their donation in your letter? Would you use one of these options? Or something different?

    1. Ten 20 lb bags and four 12 oz cans
    2. 10 bags and 4 cans of dog food 
    3. 203 lbs of dog food

    Do you include the brand name in the description? Do you state "dry" food or is it implied?

    We're trying to streamline our process for recording donations and make it as simple as possible for our volunteers to take an inventory.


    #FundraisingandDevelopment

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    Siobhan Linville
    Assistant Director
    Neighborhood Pets
    Cleveland OH
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  • 2.  RE: Acknowledging In-Kind Donations

    Posted 01-28-2025 05:20 PM

    Hi Siobhan,

    In our tax receipt letters for in-kind donations we fill in the amount that the donation is valued at and what the donation helps us do (i.e., feed, care for cats, ect.).  So we don't actually put the product in the letter, but we do keep track of that in a spreadsheet and in our donor database. 



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    Kade Alexie
    Donor Support Specialist
    Stray Cat Alliance
    CA
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  • 3.  RE: Acknowledging In-Kind Donations

    Posted 01-29-2025 07:17 AM

    Hi,

    You should not be writing an amount on the charity receipt that goes to the donor.  The IRS website says, "The donor, not the nonprofit, must determine the monetary value of goods donated. In-kind donation receipts should include the donor's name, the description of the gift, and the date the gift was received."   

    We just put "pet food" on the receipt.  I think the reason is that the value you come up with may not be the value the donor comes up with and it can be very confusing, especially for different types of donated items. 

    You do need to create a value for the pet food for your financials and your 990 tax form f.  We use an average of the amount pet food is selling for in our county.  This average has to be updated each year based on current pricing.  (We follow the guidelines of the local food bank in town and their and our tax advisor.)  This does require you to track what is coming in.  We do that by lbs and have a per lb price used in our accounting software.   Beware - the amount can add up to a significant dollar amount.  And that amount is used as part of your total income for the year on your 990.



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    Karen Kirsch
    Co-Founder
    Spayed and Aid
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  • 4.  RE: Acknowledging In-Kind Donations

    Posted 01-29-2025 05:49 AM

    Hi Siobhan,

    Here's the link to the IRS website for this: https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contributions-written-acknowledgments

    Basically: 

    The written acknowledgment required to substantiate a charitable contribution of $250 or more must contain the following information:

    • name of the organization;
    • description (but not value) of non-cash contribution;
    • statement that no goods or services were provided by the organization, if that is the case;
    • description and good faith estimate of the value of goods or services, if any, that organization provided in return for the contribution

    For us, we sometimes receive a pallet of bags of dog food from our local Tractor Supply or Lowes, or a local vet will send us flea/tick medication that is about to expire before he can use it all at the clinic. We will send them a letter that basically says,

    Thank you for the in-kind donation of a pallet of bags of dry dog food. We estimate that your donation saved us $_____ in the cost of dog food. We are a registered 501(c)(3) organization, EIN: _______, and no goods or services were provided in exchange for your contribution. This donation is fully tax-deductible to the extent allowed by law. 

    Thank you for the in-kind donation of flea/tick treatment for our animals. We estimate that your donation saved us $_____ in the cost of flea/tick treatments. We are a registered 501(c)(3) organization, EIN: _______, and no goods or services were provided in exchange for your contribution. This donation is fully tax-deductible to the extent allowed by law. 



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    Renee Milner
    Nonprofit Board Member
    Animal Shelter Alliance of Rhea
    TN
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  • 5.  RE: Acknowledging In-Kind Donations

    Posted 01-29-2025 09:02 AM

    This information is extremely helpful! Thank you!



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    Kathy Johnson
    Volunteer
    Bruno Project Rescue, Inc.
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  • 6.  RE: Acknowledging In-Kind Donations

    Posted 01-31-2025 02:22 PM

    Hi Siobhan,

    When we list the amount the donation is valued at, it is the donor's estimation that we record.

    The language we use is:

    Stray Cat Alliance is grateful for your generous contribution to our work. We thank you for your in-kind gift, which you valued at ______. Your donation helps us ______. 



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    Kade Alexie
    Donor Support Specialist
    Stray Cat Alliance
    CA
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