Recording In-Kind Donations
Goods and services donated to a church are known as "in-kind donations". These church donations can often be very beneficial for churches. Below is a guide on how to record In-Kind donations in ChurchTrac.
Recording In-Kind Donation in ChurchTrac
- Before tracking your donations made "in kind", you'll need to create a tax-deductible category called "In-Kind Donation" (or some similar name of your preference).
- You are now ready to enter in-kind donations. On the Giving Screen in ChurchTrac, enter the transaction as a contribution with an amount of $0.00. Use the Memo field to write a description of what the item is for both your records as well as future giving statements.
If the gift is significant (like a new church piano or van), a donor may request a separate letter acknowledging the gift. This would be a separate document from a church giving statement.
- The resulting Contribution Statement will reflect a line item of $0.00 for the donated item, along with a description in the memo line referencing the item.
In ChurchTrac, your category for "In-Kind Donation" should always be $0.00. Even if a purchase receipt is submitted by the giver with a dollar figure, it's not relevant for this purpose, and you should still put $0.00 as the value of the contribution.
The only time a purchase receipt is relevant is if the individual wants to be financially reimbursed for their purchase. In those situations, that would NOT qualify as a tax-deductible donation and would NOT be recorded as a donation.
