Overview

This article walks you through how to properly track, record, and report non-cash donations—like stocks or in-kind gifts—without getting on the IRS’s naughty list. You’ll also learn how to ensure these gifts reduce pledge balances without skewing your tax totals.

Why This Matters

Non-cash gifts can be generous and valuable—think stock, vehicles, or donated services—but they come with specific IRS rules. This guide helps you honor the donor’s intent, fulfill pledge goals, and keep your statements squeaky clean for year-end reporting.

At a Glance

• The IRS prohibits nonprofits from assigning a cash value to non-cash gifts.
• You can show details (e.g., gift date, type of stock) on a letter or donor statement.
• These gifts can reduce pledge balances.
• Non-cash donations must appear in a separate, non-tax-deductible total on giving statements.
• A special Category/Fund code is needed to track non-cash gifts correctly.

Before You Begin

• Estimated Time: 10–20 minutes setup, then business as usual.
• Permissions Needed: Admin access to Giving settings
• What You’ll Need:
  • Gift details (e.g., type of asset, gift date)
  • Donor pledge info
  • Investment or bank account deposit info (if applicable)

Steps

1. Create a Non-Cash Giving Category
    

   Create a special Category that ensures the non-cash gift is not counted in the tax-deductible total:

   • Go to:
     • General Settings → Giving → Giving Options and Categories
     • Scroll to the bottom and click Add New Category
       Suggested Name: Building Pledge – Non-Cash Stock Gift
     • Uncheck the Tax Deductible box
   • Click Save
     
     
     Bonus Tip: Customize terminology under General Settings → Terminology if you prefer “Fund” instead of “Category.”
      

2. Add the Non-Cash Category to Your Pledge Campaign
    

   To allow non-cash gifts to reduce pledge balances, the new category must be tied to the pledge campaign:

   • Go to:
     • General Settings → Giving → Pledging
     • Select your pledge campaign
     • Add your new non-taxable category to the campaign funds
       
       💡 Learn How to Create a Pledge Campaign »
       
       

3. Add a Pledge to the Donor’s Account

   • Ensure a pledge is recorded so both cash and non-cash gifts can count toward it:
     
     📘 How to Add Individual Pledges »
     
     

4. Record the Non-Cash Gift
    

   Since many non-cash donations (like stock) are processed outside your standard donation flow, here’s how to record them properly:

   • Enter the gift in its own batch or directly on the donor’s Giving page
   • Select the non-cash category you created earlier
   • Do not combine it with standard cash donations
     
     📘 How to Input or Edit Individual Contributions »
     
     

5. Generate a Giving Statement for Non-Cash Donations
    

   While a formal letter often satisfies IRS requirements, some donors may appreciate (or request) a statement that shows both cash and non-cash giving.

   • Ensure non-cash gifts appear in a separate total, not included in the tax-deductible cash total
   • Use your newly created non-taxable category to keep reporting clean and accurate
      
   • 📘 How to Generate Giving Statements »
     
     
     
      

Important Notes

• Even though the category is set to non-tax-deductible, the gift is likely tax-deductible for the donor—check with a tax consultant.
• You’re not assigning a dollar value to the gift. You’re simply recording what was given and when.
• Want to go the extra mile? Provide a statement or letter showing the date and description (e.g., “100 shares of Apple stock donated on 10/15/2025”).

Troubleshooting

Non-cash gift isn’t showing on the statement?

• Double-check that the correct non-taxable category was selected.
• Ensure the donor has an active pledge if the gift is meant to reduce the pledge balance.

FAQs

Q: Can I include a non-cash gift in the same total as cash gifts on a statement?

A: No. Non-cash gifts must be shown in a separate total to comply with IRS guidelines.

Q: Why do I need to mark the category as “non-tax-deductible” if it is tax-deductible to the donor?

A: This is a workaround to keep your statement reporting clean. The designation controls how it displays on the statement, not how it’s treated on the donor’s tax return.

Q: What kinds of gifts count as non-cash?

A: Common examples include:

• Stocks or bonds
• IRA contributions
• Gifts-in-kind (e.g., professional services)
• Physical goods (e.g., vehicles, real estate, equipment)

Updated January 07, 2026 18:47