In-kind definition
/What is In-Kind?
In-kind refers to a payment made with goods or services, rather than currency. The concept most commonly refers to contributions to charities that are made with goods or services. For example, a grocery store could provide in-kind food contributions to a soup kitchen. Similarly, a construction company could provide in-kind labor to construct a home for a homeless family.
When the concept is used in a will or trust, it authorizes the executor to make property payments to beneficiaries “in kind,” so that property with the correct value is awarded to each beneficiary - no matter what form it may take.
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Example of In-Kind
Here are several examples of the in-kind concept:
Donating food to a charity. A restaurant donates 500 meals to a local shelter instead of giving cash. The shelter benefits by receiving ready-to-eat food, which directly helps those in need without requiring the purchase of meals. This donation is considered an in-kind contribution because it consists of goods rather than money.
Providing free legal services. A law firm offers pro bono legal services to a nonprofit organization that helps low-income families. Instead of donating money, the firm provides legal advice, contract drafting, and representation at no charge. This in-kind contribution helps the nonprofit save money while gaining valuable legal support.
Donating equipment to a school. A technology company donates laptops and tablets to an underfunded school instead of giving cash. The school benefits by receiving useful tools for student learning, reducing the need to purchase new devices. Since the contribution is made in goods rather than money, it qualifies as an in-kind donation.