In-kind donations are a valuable form of support where a donor gives the nonprofit a personal asset β such as a computer, a building, food, or even a wheelbarrow!
- How do I record an in-kind donation in Springly?
- How do I value an in-kind donation?
- What are the journal entries for an in-kind donation? (advanced)
Please note: recording in-kind donations in Springly does not generate a Tax Receipt β you will need to create one manually.
How do I record an in-kind donation in Springly?
Navigate to the In-Kind Donation entry page
Go to Accounting > Book Entry > Voluntary Contribution in Kind.
On this page, you can record 3 types of transactions:
- in-kind donations;
- skills-based sponsorship;
- volunteer time.
By default, you land on the In-Kind Donations section.
Record the in-kind donation
Required fields:
- Label: the name of your entry. Choose something descriptive (e.g., Laptop donation β Brand X);
- Date the donation was made;
- Donation amount: the value assigned to the donation β see how public authorities recommend valuing in-kind donations;
- Donor;
- Use of donation: you have 2 options:
- Made available to the organization if it will be used or resold by the nonprofit;
- Relief in kind if it will be redistributed to people in need.
Additional fields are optional (attach an issued Tax Receipt and free-text notes).
Find your entry after saving
Once saved, you can find the entry at the bottom of your Profit and Loss statement.
How do I value an in-kind donation?
According to public authorities, valuation rules depend on the nature of the contribution.
For a service contribution
The value equals the total costs borne by the individual or organization providing the service.
For a staff secondment
The value is the total of wages and employer social contributions for the position, minus any subsidies or reductions applicable to the employment contract.
The amount is calculated by the employer, under their own responsibility, and must be provided to you by the employer.
If the nonprofit is eligible to issue Tax Receipts, it may issue one for the assessed value of the donation.
For more information, check out our articles on voluntary contributions in kind and volunteer expenses.
What are the journal entries for an in-kind donation? (advanced)
This section is purely for reference β it's not essential knowledge. π
The journal entry uses Class 8 accounts (off-balance-sheet accounts).
If you selected "Made available to the organization":
| Label | Account | Debit | Credit |
| In-kind donation of asset A | 861 - Free provision of goods | X $ | |
| In-kind donation of asset A | 870 - In-kind donations | X $ |
If you selected "Relief in kind":
| Label | Account | Debit | Credit |
| In-kind donation of asset A | 860 - Relief in kind | X $ | |
| In-kind donation of asset A | 870 - In-kind donations | X $ |
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