In-Kind Donations for Nonprofits [A Fundraiser’s Guide]

When it comes to fundraising for a nonprofit, cash donations often take center stage. However, in-kind gifts—or contributions of goods, services, or expertise—can be just as valuable in helping organizations fulfill their mission. Whether it’s office supplies, technology, professional services, or event space, these in-kind donations for nonprofits can significantly reduce costs and provide essential resources that make a real impact.

That’s why, for fundraisers, understanding how to secure and manage in-kind donations effectively is key to maximizing their effects. In this guide, we’ll walk you through everything you need to know about in-kind donations⁠—including:

What are in-kind donations?
The value of in-kind donations for nonprofits
Types of in-kind donations nonprofits can receive
How to solicit in-kind donations for nonprofits
Best practices for maximizing in-kind donations
In-kind donation challenges (& how to overcome them)

By incorporating in-kind contributions into your nonprofit’s fundraising strategy, you can build stronger community partnerships and stretch your budget further. Read on to find out how!

What are in-kind donations?

In-kind donations are non-cash contributions that support a nonprofit’s mission by providing goods, services, or expertise instead of direct financial support. Unlike monetary donations, which allow organizations to allocate funds where needed, in-kind gifts offer tangible resources that can help reduce costs and fulfill operational needs.

There are two main categories of in-kind donations:

Goods – Physical items such as food, clothing, office supplies, medical equipment, technology, or furniture. For example, a local business donating laptops to a nonprofit’s after-school program is considered an in-kind gift.
Services & Expertise – Professional services provided at no cost, such as legal assistance, marketing, graphic design, IT support, or event planning. For instance, a law firm offering free legal counsel to a nonprofit.

In-kind donations can come from individuals, businesses, foundations, or even other nonprofits looking to collaborate for a greater cause. And while the gifts don’t directly increase a nonprofit’s bank account, their impact can be just as significant, ensuring organizations have the tools, supplies, and expertise they need to serve their communities effectively.

The value of in-kind donations for nonprofits

In-kind donations play a crucial role in helping nonprofits fulfill their missions by providing essential resources without the need for direct financial expenditures. These contributions, whether in the form of goods, services, or expertise, offer significant benefits that go beyond just cost savings.

Here’s why in-kind donations are so valuable to nonprofits:

Reducing Operational Costs

One of the biggest advantages of in-kind donations is the ability to offset operational expenses. Instead of purchasing supplies, equipment, or services, nonprofits can rely on donated goods and professional support, allowing them to allocate more of their budget toward programs and direct services.

For example, a nonprofit receiving free graphic design services can invest those saved funds into expanding its outreach efforts.

Enhancing Program Effectiveness

In-kind contributions help nonprofits better serve their communities by providing immediate access to necessary resources. Food donations to a shelter, books for an after-school program, or donated medical supplies for a health clinic can directly impact those in need, ensuring services run smoothly and effectively.

Strengthening Community and Corporate Partnerships

When businesses and individuals donate goods or services, they often develop a deeper connection with the nonprofit. These relationships can lead to long-term partnerships, sponsorships, and future support.

Companies, in particular, benefit from corporate social responsibility initiatives, while nonprofits gain ongoing resources and credibility through their association with respected brands.

Increasing Donor Engagement

Not all supporters can contribute financially, but many are willing to donate in other meaningful ways. By offering alternative giving options, such as donating professional skills or surplus inventory, nonprofits create more inclusive opportunities for engagement. This expanded participation helps build a diverse and invested donor base.

Supporting Sustainability and Waste Reduction

Many businesses and organizations have surplus goods that might otherwise go to waste. By redirecting these resources to nonprofits, in-kind donations contribute to sustainability efforts while providing essential items to organizations in need. For instance, a retail store donating unsold clothing rather than discarding it helps both the environment and the nonprofit sector.

Boosting Credibility and Visibility

Receiving in-kind support from well-known businesses or professionals can enhance a nonprofit’s reputation. When reputable organizations contribute their goods or services, it signals trust and credibility to potential donors, volunteers, and grantmakers. Public acknowledgment of these partnerships can also lead to increased awareness and support from the community.

Types of in-kind donations nonprofits can receive

In-kind donations come in many forms, each providing unique value to a nonprofit’s mission. While the options are limitless, below are some of the most common types of in-kind donations nonprofits can receive:

Goods & Supplies

Physical items are among the most common in-kind donations. These can include:

Office supplies – Printers, paper, ink, furniture, and technology.
Clothing & essentials – Shoes, coats, hygiene products, and bedding for shelters.
Food & beverages – Nonperishable items for food banks, catered meals for events, or grocery store donations.
Medical supplies – First aid kits, medicines, personal protective equipment, and assistive devices.
Educational materials – Books, school supplies, and learning kits for educational programs.

Professional Services & Expertise

Additionally, many professionals offer their skills and expertise to nonprofits at no cost, saving organizations thousands of dollars in service fees. Examples include:

Legal services – Assistance with contracts, compliance, and nonprofit law.
Marketing & design – Branding, website development, graphic design, and social media strategy.
Accounting & financial planning – Tax preparation, bookkeeping, and grant writing guidance.
Technology support – IT consulting, software development, and cybersecurity protection.

Volunteer Time & Skilled Labor

Volunteers also play a crucial role in nonprofit operations, and their contributions can range from general support to specialized expertise. Some examples include:

General volunteers – Help with events, administrative work, and community outreach.
Tradespeople & contractors – Electricians, plumbers, and carpenters donating labor for nonprofit facilities.
Mentorship & coaching – Professionals providing career guidance, training, or business consulting.

Technology & Software

Nonprofits often require up-to-date technology to run efficiently⁠—but may lack the funds to invest in it. Therefore, in-kind technology donations can include:

Computers, laptops & tablets – Equipment for staff, volunteers, or program participants.
Software & digital tools – Donated or discounted software licenses, such as customer relationship management (CRM) platforms, graphic design tools, or accounting software.
Internet & IT infrastructure – Free or discounted hosting services, cloud storage, or cybersecurity protection.

Real Estate & Facilities

Finally, some organizations benefit from donated space or property to conduct operations, host events, or provide services. A few examples include:

Office space – Businesses donating unused office space for a nonprofit’s headquarters.
Event venues – Hotels, conference centers, or local businesses offering free spaces for fundraisers, meetings, or community programs.
Housing & shelters – Apartments, transitional housing, or emergency shelters for at-risk populations.

By leveraging these diverse types of in-kind donations, nonprofits can maximize their resources, reduce operational expenses, and strengthen relationships with businesses and community partners.

Understanding which types of contributions best align with an organization’s needs ensures that every donation makes a meaningful impact.

How to solicit in-kind donations for nonprofits

Securing in-kind donations requires a strategic approach, from identifying potential donors to crafting compelling requests. Many businesses and corporations are willing to contribute goods or services, but nonprofits must know where to look⁠—and how to ask effectively. That said, here are some key strategies for soliciting in-kind donations well:

Identify Companies with Open In-Kind Donation Applications

Many companies have established programs that provide in-kind support to nonprofits through an open application process. These businesses regularly donate products, gift cards, or services to qualifying organizations. And all you need to do is complete a brief application, typically on the company’s website!

However, keep in mind that each company has specific requirements for in-kind donation requests, including eligibility criteria and deadlines. Ensure your nonprofit meets these requirements before applying so you don’t waste either party’s time.

Submit Proposals to Businesses That Accept In-Kind Requests

While some companies have formal applications, others consider in-kind donation requests on a case-by-case basis. In these situations, nonprofits should prepare a powerful proposal that clearly outlines their needs and the impact of the donation.

It’s important to be specific about your request. Instead of a vague “we need supplies,” outline precisely what your nonprofit requires and how it will be used. For example, “We are seeking 10 laptops to provide free coding classes for underprivileged students.”

Then, follow up professionally. If a business expresses interest but doesn’t immediately commit, follow up with a polite reminder and additional details to reinforce your request.

Leverage Your Donors’ Employment Connections

Many nonprofits overlook the valuable business connections that exist within their own donor and volunteer networks. After all, employees often have influence over their company’s charitable giving⁠—or may be able to introduce your nonprofit to key decision-makers.

And if you’ve invested in a workplace giving platform like Double the Donation, you can even use the tools to uncover the best opportunities for corporate partnerships.

Best practices for maximizing in-kind donations

Securing in-kind donations is only the first step—maximizing their value requires strategic planning, organization, and strong donor relationships. By implementing best practices like these, nonprofits can ensure they receive the right types of donations, effectively manage resources, and encourage long-term in-kind support.

Here are key strategies to get the most out of in-kind contributions:

1) Clearly define your nonprofit’s needs.

Many businesses and individuals are willing to donate, but they need guidance on what would be most helpful. You can assist by creating a donation wishlist or developing a detailed list of items, services, or expertise that align with your mission and operations. Categorize them based on priority and share this list on your website, social media, and marketing materials.

As you do so, you’ll want to be specific and intentional. Instead of broadly requesting “supplies,” specify “new or gently used laptops for our after-school program” or “professional marketing support for our annual fundraising campaign.”

2) Focus on securing in-kind gifts from corporate donors.

Corporate donors are one of the most reliable sources of in-kind donations, as many businesses have corporate social responsibility (CSR) programs that support nonprofits. Securing in-kind gifts from companies can provide essential resources such as office supplies, technology, food, clothing, and professional services.

At the same time, emphasize how the company will benefit from supporting your nonprofit, such as increased brand visibility, employee engagement, and positive community impact.

3) Look into employee-led giving opportunities.

Many companies encourage their employees to give back to the community, often through donation-matching programs, volunteer initiatives, and employee-led fundraising efforts. Organizations can benefit from these programs by encouraging their existing supporters to get involved in their employers’ offerings!

4) Regularly evaluate and optimize your in-kind donation strategy.

To improve your in-kind donation program, assess its effectiveness and make necessary adjustments. To do so, you can…

Analyze past donations – Identify trends in what types of contributions were most useful and where there may be gaps.
Gather feedback from staff and donors – Ask team members and contributors how the process can be improved.
Adjust requests as needed – As your nonprofit’s needs evolve, update your in-kind donation strategy accordingly.

By following these best practices, nonprofits can maximize the impact of in-kind donations, build lasting partnerships, and ensure that donated goods and services directly support their mission.

In-kind donation challenges (& how to overcome them)

While in-kind donations can provide significant value to nonprofits, they also come with unique challenges. From receiving items that don’t align with your organization’s needs to managing logistics and donor expectations, nonprofits must navigate these hurdles strategically.

Here are some common challenges and how to overcome them.

Issue: Donors not knowing how they can help

Many potential donors are willing to contribute in-kind gifts but may not be aware of what your nonprofit needs or how to donate effectively. This can lead to missed opportunities or donations that don’t align with your organization’s mission.

Solution: Create and share a donation wish list! Provide a clear, updated list of needed items or services on your website, social media, and outreach materials. Be specific about what will be most helpful. Then, make it easy to give by offering multiple donation methods, drop-off locations, and more.

Issue: Valuing and tracking in-kind donations

Nonprofits often struggle to determine the fair market value of donated goods and services, making it difficult to track contributions accurately for financial reporting and donor acknowledgment.

Solution: Use IRS guidelines and valuation resources! Luckily, the IRS provides guidelines on valuing in-kind gifts, and large-scale organizations like Goodwill and The Salvation Army offer estimated values for common donated goods. From there, you’ll want to implement a donation tracking system, too. Use donor management software to log details such as the donor’s name, item description, estimated value, and intended use.

Issue: Storing and managing in-kind goods

Large or frequent in-kind donations can create logistical challenges, especially if a nonprofit lacks storage space or struggles with distribution.

Solution: Assess your storage needs before accepting donations. Have a clear policy on what types of donations you can accept based on available storage and immediate needs. Then, establish inventory management practices, such as using shelving, labeling, and digital tracking systems to keep track of received goods and their distribution.

While in-kind donations come with their challenges, a proactive approach can help nonprofits make the most of these contributions. By setting clear guidelines, improving communication, and optimizing storage and tracking, organizations can harness the power of in-kind giving while minimizing potential roadblocks.

Wrapping up & additional resources

In-kind donations are a powerful yet often underutilized resource for nonprofits. They provide essential support, reduce financial burdens, and foster meaningful relationships between organizations and their donors. By strategically identifying needs, building partnerships, and expressing gratitude, your nonprofit can maximize the benefits of in-kind giving.

As you refine your fundraising efforts, don’t overlook the potential of in-kind contributions. Whether securing donated office supplies, professional services, or event sponsorships, these gifts can make a lasting impact.

Start implementing an in-kind donation strategy today, and watch how it helps your organization thrive while strengthening community engagement.

Interested in learning more about in-kind donations for nonprofits and beyond? Check out these additional resources:

What to Know About Completing an In-Kind Gift Application. Applying for in-kind donations can be a competitive process, and knowing how to present your nonprofit effectively is key. This guide walks you through the essential steps of completing an in-kind gift application, including crafting a compelling request, providing documentation, and increasing your chances of approval.
Auction Items for Nonprofits: Ideas for Engaging Events. Charity auctions can be a powerful way to raise funds and engage supporters at nonprofit events. This resource provides creative and high-value auction item ideas (which can be secured through in-kind gifts), including travel experiences, exclusive services, and unique memorabilia to help maximize fundraising success.
20 Leading Companies That Give In-Kind Donations [A Guide]. Many corporations actively support nonprofits through in-kind contributions, ranging from donated products to professional services. This guide highlights 20 top companies with established in-kind donation programs, including details on eligibility, application processes, and how nonprofits can request support.