161: A Rinky-Dink Outfit | Why Recording In-Kind Donations Matters For Your Nonprofit

Your nonprofit is doing real work, but do your financials show it?

In this episode, Meghan and I tackle a listener question from a small nonprofit that's running into a big problem: their numbers don't match their story. The for-profit company supporting them pays for nearly everything, but none of that shows up on the books, and funders are raising eyebrows.

Real Listener Question:

"Our employees, office space, and equipment are all paid for by a for-profit company and donated to our nonprofit. Our financials make it look like we're barely doing anything. I've been tasked with finding major funders and the narrative just doesn't match the numbers. What do I do?"

If your nonprofit receives donated goods, services, space, or time, this episode is for you. Meghan and I break down what in-kind donations are, why recording them matters, and how getting this right can completely change how funders see you.

What You'll Learn:

• What counts as an in-kind donation and how to assign it a value
• How to record donated office space, employee time, and services on your books
• Why your financials need to tell the same story as your narrative
• How in-kind contributions can strengthen your grant proposals
• Why nonprofit bookkeeping is specialized and when to bring in the experts
• The one thing you should never do when valuing a donor's gift

Bottom line: Your numbers tell a story whether you want them to or not. Make sure yours reflects the real work your nonprofit is doing.

Resources from this Episode

• Learn about the value of volunteer time at Independent Sector: https://independentsector.org/research/value-of-volunteer-time/
• Quickbooks for Nonprofits Facebook Group from Megan Genest Tarnow: https://www.facebook.com/groups/QB4NPs
• Previous Episode: Can Business Interruption Insurance Help Nonprofits Who Closed During ICE Raids? With Cody Wiswasser: https://birkenlaw.com/charity-therapy-podcast/ct160-nonprofit-business-insurance
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT161_Transcript.pdf

Connect with Us

• Jess Birken: https://www.linkedin.com/in/jessbirken/
• Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/

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