Can a donor deduct the value of donated services?

No - the value of donated services is never deductible (IRS Pub. 526). However, donors can deduct unreimbursed out-of-pocket expenses incurred while volunteering (e.g., supplies purchased, mileage at 14¢/mile, travel costs). For donated professional services, send a thank-you letter that does NOT imply tax deductibility of the service value.

What about donated vehicles?

Vehicles claimed over $500 require IRS Form 1098-C from the charity. The charity must send Form 1098-C to the donor within 30 days of sale of the vehicle (or 30 days of donation if the charity uses the vehicle in its operations). Donor's deduction is generally limited to gross proceeds of sale (with exceptions for charity use, material improvements, or sale to needy individual).

Does the donor need to file extra forms?

For non-cash contributions claimed over $500, donor files IRS Form 8283 with their tax return. Section A: $501-$5,000. Section B: Over $5,000 (requires qualified appraisal and charity signature on Form 8283 Section B Part IV — note that charity signature acknowledges receipt only, not the valuation).

What's a "qualified appraisal"?

For in-kind contributions over $5,000, IRC §170(f)(11) requires a qualified appraisal performed by a qualified appraiser (with specific credential and education requirements). The appraisal must be obtained no earlier than 60 days before the donation and no later than the due date of the donor's return. Cost of appraisal is borne by the donor and is itself deductible as a miscellaneous expense (subject to current-year tax law).

In-Kind Donation Acknowledgment Letter

Acknowledgment letter for non-cash (in-kind) contributions — goods, services, or property donated to a 501(c)(3).

Customise

Organization name

Organization address

EIN

Donor name

Donor address

Date of contribution

Type of contribution

Description of donated items / services

Donor's estimated value (if disclosed)

Organization's valuation statement

Goods or services provided in return

Description of any goods/services

Authorized representative

Title

Live preview

Riverbend Community Outreach
1407 Maple Avenue, Suite 220, Madison, WI 53703
EIN: 47-3829145

May 7, 2026

Highline Office Supply, Inc.
88 Industrial Way, Madison, WI 53713

═══════════════════════════════════════════════════════════════════════

                    IN-KIND DONATION ACKNOWLEDGMENT

═══════════════════════════════════════════════════════════════════════

Dear Highline Office Supply, Inc.,

On behalf of Riverbend Community Outreach, thank you for your generous in-kind
contribution.

CONTRIBUTION DETAILS

   Date received:           April 15, 2026
   Type:                    Tangible goods

DESCRIPTION OF GOODS / SERVICES

40 cases of premium copy paper (8.5x11, 20-lb, 5,000 sheets per case = 200,000 total sheets).
12 ergonomic office chairs (Steelcase Series 1, mesh-back, fully adjustable).
Delivery and setup at organization's Madison office on April 15, 2026.

═══════════════════════════════════════════════════════════════════════

VALUATION

Per IRS Treasury Regulation §1.170A-13(b)(1), the donor — not the
recipient organization — is responsible for determining the fair-market
value of in-kind contributions. Riverbend Community Outreach therefore declines
to assign a value to the donated items in this acknowledgment.

For your records, you indicated an estimated value of $3,800.00.
For non-cash contributions claimed at over $500, you must file
IRS Form 8283 with your tax return. For property valued over $5,000,
a qualified appraisal is required.

═══════════════════════════════════════════════════════════════════════

GOODS OR SERVICES PROVIDED IN EXCHANGE

No goods or services were provided.

N/A — no goods or services provided to donor in exchange for this contribution.

═══════════════════════════════════════════════════════════════════════

TAX-DEDUCTIBLE STATUS

Riverbend Community Outreach is a 501(c)(3) public charity recognized by the
Internal Revenue Service (EIN 47-3829145). Contributions are
deductible to the extent allowed by law under IRC §170.

═══════════════════════════════════════════════════════════════════════

Your support directly advances our mission. We are deeply grateful.

Sincerely,


_______________________________            Date: ____________________
David Okonkwo
Executive Director
Riverbend Community Outreach

═══════════════════════════════════════════════════════════════════════

PLEASE RETAIN FOR TAX RECORDS.

About this template

In-kind donation acknowledgments are written letters charities provide to donors who give non-cash contributions — goods, services, real property, vehicles, or securities. The IRS treats in-kind gifts differently from cash: donors must determine fair-market value themselves (Treas. Reg. §1.170A-13), and charities are explicitly NOT required to value the donation, with most charity counsel recommending against doing so to avoid liability if the IRS later disputes the donor's claimed deduction. Critical valuation rules: (1) Under $250 - bank record or simple receipt suffices. (2) $250-$500 - written acknowledgment required, must describe (not value) the property. (3) $500-$5,000 - donor must file IRS Form 8283 Section A with their tax return. (4) Over $5,000 - donor must obtain a qualified appraisal and file Form 8283 Section B; charity signs Form 8283 acknowledging receipt (signature does NOT mean charity agrees with valuation). (5) Over $500,000 - appraisal must be attached to the tax return. Special categories: Vehicles - if claimed value over $500, charity must provide IRS Form 1098-C within 30 days of sale (or 30 days of donation if charity uses the vehicle); donor's deduction is generally limited to charity's gross sale proceeds. Services - donor cannot deduct the value of donated services (only out-of-pocket expenses). Use of property - same rule (donor cannot deduct rental value of donated facility use). Inventory - corporate donors may have additional deductions under IRC §170(e)(3) for food/medical inventory. Best practices for in-kind acknowledgments: (1) describe the goods specifically (model, condition, quantity), (2) state the date received, (3) explicitly DECLINE to value the donation, (4) note any goods/services provided in return, (5) reference donor's responsibility to file Form 8283 for over $500 contributions. Common errors: charity stating a value (creates liability if IRS disputes); failing to describe items in sufficient detail; conflating in-kind with cash receipts.

When to use it

Receiving any non-cash donation of $250 or more (legally required).
Receiving donated professional services (note: service value is NOT deductible).
Receiving inventory or supplies from corporate donors.
Receiving real property, vehicles, or securities.
Year-end summary including in-kind gifts.

What to include

Organization name, EIN, address.
Date and detailed description of goods/services received.
Statement declining to assign value (IRS requires donor valuation).
"No goods or services" statement OR description and FMV of any provided.
Reference to Form 8283 requirements for $500+ contributions.
Authorized signature.

Frequently asked

No - per IRS Treasury Reg. §1.170A-13(b)(1), the donor (not the recipient charity) is responsible for determining fair-market value. Most counsel recommends charities explicitly DECLINE to assign value to avoid liability if the IRS later disputes the donor's deduction. Describe the items in detail; let the donor or their appraiser value them.

⚠ Legal disclaimer. In-kind donation acknowledgments must comply with IRC §170 and Treas. Reg. §1.170A-13. The recipient charity should not assign value (donor responsibility). Vehicle donations require IRS Form 1098-C. Contributions over $5,000 require qualified appraisals. Services and use of property are not deductible (only out-of-pocket expenses for services). State charitable-solicitation registration may apply (California, New York, others). Consult IRS Pub. 526 (donor) and IRS Pub. 1771 (charity) for current rules. This is not legal or tax advice.