A gift in kind refers to a gift of property other than cash. It can include capital property such as land, buildings, securities and personal use property such as art, equipment and coin or stamp collections. A gift in kind does not include a gift of services.
An important consideration is that the church must be willing to accept the gift. The donor can’t unilaterally donate a gift in kind.
If a receipt is being issued for a non-cash gift, it must reflect the fair market value of the gift. It is the responsibility of the church to determine the fair market value. Generally, if the fair market value of the gift in kind is less than $1,000, a member of the church, or another individual, with adequate knowledge of the property may determine its value. If it is anticipated the fair market value of the property is more than $1,000 it is recommended the property be professionally appraised by a third party, i.e. someone who is not associated with either the church of the donor.
Charitable donation receipts issued for gifts in kind must include the following in addition to the normal information required:
- Date on which the donation was received
- A brief description of the gift in kind (property transferred to the church)
- The name and address of the appraiser if applicable
- The deemed fair market value of the gift in kind (the amount of the gift)