December is the most giving month of the year, and there are many good reasons to do so. As a business and individual, December 31 marks the last day that the donors will benefit from a tax reduction the following April from their charitable gift.
In 2022, Americans gave $499.33 billion to charity. 30% of annual giving happens in December, with about 10% of all annual donations coming in the last three days of the year. Beside cash donation, 81% of donors contribute food or other goods to nonprofits through in-kind donations.
An in-kind donation is a non-cash gift made to a nonprofit organization, it helps the organization access goods and services that would otherwise be too expensive on a tight budget or else free up resources to be spent on something else. In-kind donations include physical property, intangible property (copyrights or intellectual property), services and rent-free space. For example, “pro bono” is just another way to describe an in-kind donation of professional services.
This type of donation is often a simpler way for businesses to give. Often, they don’t have to consider their budget or cash flow when they choose in-kind donation as their way of giving. They can simply be of excess goods or unsold inventory, and in return, they receive a receipt that records the fair market value of the goods donated for tax deduction purposes.
At IAFL, we deeply appreciate the various in-kind donations from our industry partners. They become our raffle prices at the events that we host, or if they are hygienic products, we ship them to the girls that are in need of these products in Haiti.
Donations can take all-form, in-kind donations is just another way for donors to give with minimal financial burden and non-profits like us to connect with the individuals and businesses in our network. We would like to wish you all a Happy Holidays and Happy Month of Giving!
Written by Shu-Ping Jennifer Chen
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