With a thoughtful donor prospecting strategy and well-crafted appeals, you’re already on your way to generating the support your nonprofit needs. But what if we told you that there are other types of donations your nonprofit can accept to generate increased support?

In-kind donations are an often-overlooked form of giving that can greatly impact your organization. In this guide, we’ll cover what in-kind donations are and the top ways they can support your nonprofit’s cause. Let’s get started!

What are in-kind donations?

In-kind donations are a critical yet often under-leveraged form of nonprofit support. Each year, U.S. donors contribute an estimated $58 billion in in-kind goods and services, according to Double the Donation’s In-Kind and Grant Statistics report. These kinds of non-monetary gifts can significantly reduce your organization’s operating costs while helping you deliver more impact per dollar raised.

Here’s a breakdown of the most common (and valuable) types of in-kind contributions:

  • Goods. Usually when people think of in-kind gifts, goods and items are what first come to mind. Most nonprofits will ask for this type of gift for their beneficiaries, such as dog food for an animal shelter. In-kind donations of goods are also great for environmentally-focused organizations, as they allow supporters to stay sustainable through recycling.
  • Services. Some individuals or companies are willing to donate their services to aid your nonprofit’s cause. Examples of services that would be beneficial for your nonprofit include graphic design, legal consulting, and accounting.
  • Volunteer hours. Volunteer hours are another form of in-kind donation. According to the latest volunteer statistics, the average value of a volunteer hour in the U.S. is $32.17. Even better? Many companies offer volunteer grant programs that provide direct funding to nonprofits (often between $8 and $15 per hour volunteered), turning every hour of service into both labor and funds.
  • Equipment. Video equipment, audio equipment, and computers are just a few examples of tools that would be helpful for nonprofits for events and day-to-day tasks. This can even include older but still functional tools!
  • Software. When it comes to boosting your nonprofit’s performance, software can make a great difference. Certain companies may be willing to donate the use of their software to your nonprofit through corporate philanthropy initiatives.

Much like with monetary gifts, you’ll need to market your need for in-kind donations to garner support. Be sure to include a section about in-kind gifts on your nonprofit website’s donation form or ways to give page. You can even embed a corporate giving database on these pages to easily uncover businesses with in-kind donation opportunities.

Now that you understand what in-kind donations can encompass, let’s dive into a few ways they can support your cause.

1. Aiding your beneficiaries.

The first, and perhaps most obvious, way that in-kind donations support a nonprofit’s cause is by directly aiding its beneficiaries. If your nonprofit is human-centered, you likely already accept in-kind donations such as:

  • Food
  • Bottled water
  • Clothing
  • Medical supplies
  • Hygiene items

Your organization isn’t limited to just these in-kind gifts—it entirely depends on who your beneficiaries are. For example, if you’re aiding people experiencing economic hardship who need a place to stay, you may also accept bedding and shelter materials, such as blankets, sleeping bags, tents, and tarps. On the other hand, if your mission is to ensure every child receives a great K-12 education, you might collect study supplies such as notebooks, pens, pencils, and textbooks to give to students in need.

Additionally, using in-kind donations to directly aid your beneficiaries isn’t limited to nonprofits that help humans. If your cause is animal-related, you could accept pet food, toys, collars, leashes, and bedding.

If you intend to meet your beneficiaries’ needs with specific items, consider hosting a drive-style fundraiser. For example, as winter approaches, you could host a clothing drive fundraiser for those experiencing economic hardship. Accept gently used winter clothing donations that you can distribute to your beneficiaries. Not to mention, you can reach out to companies that may be willing to donate in-kind goods at scale, supplying significantly more resources than an individual donor may be able to provide on their own. For example:

  • An office supply chain contributing thousands of notebooks and backpacks for a back-to-school drive
  • A clothing retailer donating hundreds of winter coats for distribution at shelters
  • A local grocery chain providing surplus or soon-to-expire food for a community pantry

By collaborating with businesses (especially those already aligned with your mission area), you can dramatically increase your reach and reduce costs, while offering companies a meaningful way to give back with tangible impact.

2. Host events on a budget.

Dedicated fundraisers are essential for engaging your community, cultivating donors, and driving revenue, but they can also be resource-intensive. Fortunately, corporate sponsors and other partners are often eager to support nonprofit events through donations of goods and services, helping reduce costs while enhancing the guest experience.

Here are a few key areas where in-kind contributions can make a major difference:

  • Venue. Venue rental is one of the largest overhead costs for any nonprofit event. Instead of using your funds, connect with your major donors or corporate sponsors. Ask them if they manage or own any suitable facilities and if they would consider allowing you to use them for your event for free or low cost.
  • Setup. Event setup is a lengthy process. To shorten setup time, ask supporters if they’d be willing to volunteer at your event. You can also engage volunteers in other event-related tasks, such as helping on-site registrants and teardown at the event’s end.
  • Decorations. Instead of purchasing all decorations yourself, ask supporters if they’d be willing to donate any that they have lying around. In addition, reach out to corporate partners, local retailers, or event supply companies who may be able to donate themed items or surplus inventory. For example, a home décor store could provide centerpieces for a gala, or a holiday retailer might contribute seasonal props for a winter-themed fundraiser.
  • Catering and entertainment. For these services, research local restaurants and entertainment companies and create a list of those who have a vested interest in corporate philanthropy.
  • Audiovisual equipment. For events with speakers, panels, or livestreaming components, AV equipment is a must. Rather than renting expensive gear, reach out directly to corporations. Tech companies, marketing agencies, or event production firms may be willing to loan or donate equipment like microphones, cameras, speakers, and projectors. You can also ask if they’d be willing to provide an AV technician to assist onsite as a professional service donation.

When it comes to supporting your events with in-kind gifts, don’t be afraid to get creative with your requests! This is especially true of smaller asks. While some supporters might hesitate to donate their hard-earned money, they may be open to gifting items directly.

3. Supplementing your fundraising.

Although in-kind donations are different from monetary donations, you can convert in-kind donations into financial gifts through certain fundraising events. Let’s take a look at three examples:

Recycling drive. During a recycling drive, you’ll ask your supporters to collect and donate recyclable items to your nonprofit, such as tin cans, glass bottles, and newspapers. You’ll take these items and give them to a recycling center, which will pay you per pound of material. Some companies, such as Phill the Box (which accepts clothing and shoes), will even handle the pickup for you to make the process more convenient.

Second-hand clothing sale. This fundraising event operates in two stages. In the first stage, you’ll collect donations of gently used, good-condition clothing from your supporters. You’ll sort through these in-kind donations and decide which items you’ll feature during the sale. In the second stage, you’ll host the actual clothing sale, where you invite supporters to browse the items and purchase those that interest them.

Auctions. Auctions are one of the most popular ways to monetize in-kind donations, and corporate contributions can take them to the next level. Many businesses are willing to donate products, services, or experiences that can become standout auction items, including gift cards, exclusive experiences, themed items, or branded merchandise. According to Handbid, bundles of smaller-value items perform exceptionally well at auctions. For example, a Valentine’s Day basket could feature a bottle of wine, artisan chocolates, and a florist’s gift card—all of which can be sourced through local businesses interested in community engagement.

In-kind gifts are useful donations that can be used in a variety of ways to further your nonprofit’s mission. If you’re ready to begin requesting these gifts, outline clear guidelines on your nonprofit’s donation page and create a streamlined donation process for your supporters. Additionally, segment your communications to target local supporters and corporate donors. By doing so, you’ll increase the likelihood of receiving in-kind donations and garnering support.

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