In-kind donation receipt template

Three free templates for non-cash gifts: donated goods, items given for an auction, and donated services. Each follows the IRS rule that you describe the gift and never value it.

The one rule that matters most

Describe the gift. Do not put a dollar value on it. The organization says what it received; the donor decides what it was worth and answers to the IRS for that figure. A receipt that states a value puts you in the position of vouching for a number you cannot support.

Describe the item well enough that someone who never saw it would understand what it was: what it is, how many, the brand or model if it has one, and its condition.

What an in-kind receipt must contain

• Your organization's name.
• A description of the property, with no value.
• A statement that no goods or services were provided in return, or a description and estimate of anything the donor did receive.

The date you received the gift is not strictly required but belongs on every receipt.

1. Donated goods or equipment

[Date]

[Donor name]
[Street address]
[City, State ZIP]

Dear [Donor name],

Thank you for your generous support of [Organization name]. This letter is the written acknowledgment of your contribution for your tax records.

Non-cash contribution received on [Date of gift]:
[Description of the item, for example "Dell laptop computer, model Latitude 5420, used, in working condition"]

We describe non-cash gifts but, as the IRS requires, do not assign them a value. Determining the value of donated property is the donor's responsibility.

No goods or services were provided in exchange for this contribution.

[Organization name] is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Contributions are tax-deductible to the extent allowed by law. Our federal tax identification number (EIN) is [EIN].

Please keep this letter with your tax records.

With gratitude,

[Signer name]
[Title]

2. Item donated for an auction or raffle

For a person or business that gives you something to sell at a fundraiser.

[Date]

[Donor name]
[Street address]
[City, State ZIP]

Dear [Donor name],

Thank you for donating to the [Event name] in support of [Organization name]. This letter is the written acknowledgment of your contribution for your tax records.

Non-cash contribution received on [Date of gift]:
[Description of the item, for example "Gift basket of local food products" or "Certificate for a weekend stay at a two-bedroom cabin"]

We describe non-cash gifts but, as the IRS requires, do not assign them a value. Determining the value of donated property is the donor's responsibility. The rules for deducting items donated for resale or auction can differ from other gifts, so please consult your tax adviser.

No goods or services were provided in exchange for this contribution.

[Organization name] is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Contributions are tax-deductible to the extent allowed by law. Our federal tax identification number (EIN) is [EIN].

Please keep this letter with your tax records.

With gratitude,

[Signer name]
[Title]

3. Donated services or volunteer time

Donated services are not deductible, so this is a thank-you letter and not a tax receipt. Do not issue a receipt showing a value for someone's time, however professional the work.

[Date]

[Donor name]
[Street address]
[City, State ZIP]

Dear [Donor name],

Thank you for the time and skill you gave to [Organization name] this year. Your [Description of the services, for example "design of our annual report"] made a real difference to our work.

For your records: the IRS does not allow a charitable deduction for the value of donated services or time. If you paid out-of-pocket expenses while volunteering that we did not reimburse, those may be deductible, and we would be glad to provide an acknowledgment of the services you performed. Please consult your tax adviser.

With gratitude,

[Signer name]
[Title]

Larger gifts: the extra paperwork

• Over $500: the donor files Form 8283 with their tax return. Nothing extra is required from you.
• Over $5,000: the donor generally needs a qualified appraisal, and will ask you to sign Form 8283 to confirm you received the property. Signing confirms receipt. It does not mean you agree with the appraised value.
• If you sell that property within three years: when you signed a Form 8283 for an appraised gift and then sell, trade or dispose of the item within three years, you must file Form 8282 with the IRS and send the donor a copy.
• Vehicles, boats and aircraft over $500: you must give the donor Form 1098-C, usually within 30 days of selling the vehicle, or within 30 days of receiving it if you will keep and use it.
• Stock and other securities: describe the shares (company and number of shares) and the date received, with no value.

Things that are not deductible gifts

• Time and services, including professional work such as legal, accounting or design help.
• Free use of property, such as a rent-free office or a week at a vacation home donated for your auction.
• Blood donations.

Thank these donors warmly, but do not send them a tax receipt.

Common mistakes

• Writing "valued at $300" on the receipt.
• A vague description such as "household items" or "miscellaneous goods".
• Issuing a receipt for volunteer hours.
• Forgetting the goods-or-services sentence.

Many in-kind donors at once

Keep a row for each gift in your spreadsheet, with the description in its own column and the amount left blank. Upload it here and each donor gets one letter that lists their cash gifts with a total and describes their non-cash gifts without a value. The first three letters are free.

Make my letters