Certified Nonprofit Professional Practice Exam 2025 – All-in-One Guide to Master Your Certification!

Question: 1 / 400

What are "in-kind donations"?

Monetary donations used for operations

Contributions of goods or services rather than cash

In-kind donations refer to contributions of goods or services rather than cash. This type of donation provides direct support to nonprofits without the transfer of money. For example, a company may donate office supplies, food for an event, or offer professional services like legal aid or marketing consulting. These contributions can be just as valuable as cash donations, as they often help an organization reduce its operating costs or enhance its programming capabilities.

Understanding the nature of in-kind donations is essential for nonprofits, as they must appropriately value and report these contributions for accounting and funding purposes. It also allows nonprofits to leverage resources effectively within their communities, broadening their impact without necessarily increasing their financial burden.

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Donations made by corporate sponsors

Long-term grants provided by government agencies

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