Gifts-in-kind are items received by councils in lieu of cash. These are items that the council would have purchased if they hadn’t been donated – put another way, all gifts in-kind must be budget relieving. For example, if the council receives a gift of copier paper, that’s budget relief (since we already budget to buy paper). A new sailboat is not budget-relieving, we are not budgeting to buy a sailboat.

Gamehaven Council is not in the appraisal business. Thus, gift receipts to donors will not state a market value for any gift-in-kind. It is the donor’s responsibility to document the value of the gift. It is also the donor’s responsibility to properly classify the deduction as either a charitable deduction or a business expense (most companies will claim the latter). The IRS only expects the local council to provide a receipt that shows the date of the gift, and describes the donated item but does not value it.

For suggestions of a suitable gift-in-kind, reach out to Arne Landsverk.