In-kind donations (a.k.a gifts in kind) refer to the monetary value of donated goods or services. Another organization, business or an individual may provide in-kind contributions.

Examples of in-kind gifts:

Goods: such as art supplies, furniture, paper, computers, food, building materials etc
Services: meeting or office space, construction or building labor, and administrative/financial support
Expertise: bookkeeping and/or accounting services; legal, tax, or business advice; or marketing, search engine optimization, or social media development

Step-by-step guide

Typically, you will setup in-kind revenue and expense accounts that mirror the types of donations your organization receives

Setting up your accounts:
1. - One account will be an in-kind revenue for bookkeeping
  - The other is an expense for bookkeeping
  - Some organizations only have an in-kind expense account and in-kind revenue account
  - Other organizations will go more in-depth and separate the actual areas the donation falls under (supplies, equipment, services, etc.)
  **In order to track donations in detail, utilizing multiple accounts such as income and expense accounts is best.
How to track donated items:
1. You receive a donation of $1,000 worth of supplies. Your journal entry for this would be:
  - Debit supplies in-kind expense account for $1,000
  - Credit Donation in-kind revenue account for $1,000
2. Your organization is given a piece of jewelry valued at $3,000 to be auctioned at your annual fundraiser. Your journal entry would be:
  - Debit asset $3000
  - Credit contribution revenue $3000
3. An individual at the above fundraiser purchases your jewelry piece for $5000. Your journal entry would be adjusted for the difference in sale:
  - Debit cash $5000
  - Credit asset $3000
  - Credit contribution revenue $2000
4. If however, your jewelry only sold for $1000 then your journal adjustment would look like:
  - Debit Cash $1000
  - Debit contribution revenue $2000
  - Credit asset $3000

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