Enter a Voluntary Contribution in Kind

Voluntary Contributions in Kind are becoming increasingly common in the nonprofit sector.

Many nonprofits rely on volunteer work or the free provision of resources. Yet even when these contributions form a core part of a nonprofit's operating model, they are not always properly captured and reported in the books — often because no financial transaction takes place. In this article:

• What is a Voluntary Contribution in Kind?
• Recording a Voluntary Contribution in Kind in Springly

👉 Please note: Due to a technical limitation, this module does not generate a Tax Receipt — you will need to create one manually. Feel free to submit a suggestion if you'd like to see this feature added.

What is a Voluntary Contribution in Kind?

A Voluntary Contribution in Kind can take several forms:

• An in-kind donation, whether used directly by the nonprofit or redistributed;
• Skills-based volunteering, where a company or organization provides staff who make a significant contribution to the nonprofit's activities;
• Volunteer time: the nonprofit can assign a monetary value to the time volunteers spend working on its behalf.

For more information, we recommend these articles on Voluntary Contributions in Kind and volunteer expenses.

Should you measure Voluntary Contributions in Kind?

Voluntary Contributions in Kind are a significant matter for nonprofits. They help reflect the true value of the organization's activities, even when no money changes hands.

In its Association Review No. 65 (July 2015), Deloitte recommends recording Voluntary Contributions in Kind when they are significant, quantifiable, and can be assigned a monetary value.

As treasurer, whether to record these contributions depends on several factors:

	ARE THESE CONTRIBUTIONS SIGNIFICANT? If no, it is advisable not to mention these contributions in your books at all. If yes, consider whether they are quantifiable.
	ARE THESE CONTRIBUTIONS QUANTIFIABLE? If no, you can simply reference these contributions in the notes to your financial report (qualitative information only). If yes, consider whether they can be assigned a monetary value.
	CAN THESE CONTRIBUTIONS BE ASSIGNED A MONETARY VALUE? If no, it is advisable to reference these contributions in the notes to your financial report (both qualitative and quantitative information). If yes, you can record these contributions at the bottom of your Profit and Loss and describe the valuation methods in the notes. To do so, use the "In-kind donations and volunteering" section under Accounting > Book entry. Springly will automatically display the contributions at the bottom of your Profit and Loss.

Recording Voluntary Contributions in Kind in Springly

To record Voluntary Contributions in Kind, go to Accounting > Book entry → Voluntary Contribution in Kind.

You will land on the following screen:

From this screen, you can record:

• In-kind donations learn how to record this entry
• Skills-based volunteering contributions learn how to record this entry
• Volunteer time valuation learn how to record this entry