Simple definition
A non-cash donation of goods, services, or use of facilities. Under FASB ASC 958-605, certain in-kind contributions (especially specialized services) must be recognized as revenue on financial statements.
Why it matters for your nonprofit
Boards, auditors, and funders expect clarity on In-Kind Contribution because it affects how you report resources, stay compliant, and explain your financial story.
How it shows up in daily work
You will see In-Kind Contribution in board packets, grant reports, and donor conversations. The goal is to record activity once and report it consistently—without rebuilding spreadsheets every month.
Common mistakes
- Treating restricted resources like general cash because the chart of accounts is not set up for funds.
- Letting finance and development use different definitions for the same funds.
- Waiting until year-end to fix coding errors that should be caught monthly.
How AlignMint helps
AlignMint ties fund accounting, donor records, and reporting in one place so terms like In-Kind Contribution show up correctly in your books—not only in a policy memo.