What it is:
Also known as a gift-in-kind, a non-cash gift is property other than cash that a donor transfers to a charity. Gifts of services may not be acknowledged with official receipts for income tax purposes.
Examples of non-cash gifts:
- real estate
- equipment
- household items
- furniture
- computers
- office supplies
- tools/building supplies
- books
- securities
Benefits:
- Non-cash gifts are often eligible for a tax receipt. You must consult with the receiving charity for details on their acceptance policy.
- Many charities are in need of non-cash items for their operations. They would otherwise have to spend valuable cash to acquire these items themselves.
- The donor can convert no longer needed items into a charitable gift.
How it Works:
- Contact the charity to discuss their need or desire to accept your gift as well as their gift acceptance policy.
- Provide the charity with documentation on your cost and date of original purchase. Please note, the charity will issue a donation receipt for the item’s current fair market value, subject to certain situations.
- Allow the charity to arrange an independent appraisal to establish the FMV (fair market value) for receipting purposes.
Further Info:
Please consult with the receiving charity to find out more about their gift acceptance policy. Not all charities are willing to receive all types of non-cash gifts and not all gifts are eligible for a tax receipt.