Veterans Relief Fund, Inc.
A California, non profit charity, designed to take marijuana as a tax deductable gift.
That medicine is then given to veterans in medical need, from injury, illness, or PTSD.

Veterans Relief Fund, Inc.  In Kind - Donations
A California 501C3 non profit charity, designed to take IN KIND / DONATIONS and TAX s Deductable Gifts for veterans that are considered our patients.

Veterans Relief Fund, Inc - a California 501C3 non profit charity

What Is a In-Kind Donation 501C3?

A 501(c)(3), or non-profit, is an IRS approved organization that has a charitable, religious, public safety, or educational purpose. The benefit of qualifying as a nonprofit is that the organization does not have to pay taxes on the money it receives and donors to a 501(c)(3) can deduct the amount of their gifts from their taxable income. As a result, classifying and measuring the amount of donations, such as in-kind donations, can be an incredibly important part of preparing an entity’s tax return.


By John Cromwell

CPA  - Types of Donations

There are two types of donations that can be made a to a 501(c)(3). A cash donation is the transfer of funds to a nonprofit. An in-kind donation is the transfer of any other type of asset. Donors to a nonprofit can be private or corporate. While private donors generally tend to make cash donations, in-kind donations are not uncommon. Corporations may prefer donating its products or services because such items would be easier to provide than money if the business has inconsistent cash flow. Charities may also prefer in-kind donations because in-kind gifts typically cost less to the donor than cash; therefore, the donor can afford to give more.

Veterans Relief Fund, Inc - a California 501C3 non profit charity

This wheelchair is an example of an IN-KIND donation
to The Veterans Relief Fund, Inc. of California

Veterans Relief Fund, Inc - a California 501C3 non profit charity

These prosthetics are an example of an IN KIND Donation
to The Veterans Relief Fund, Inc. 501C3 of California

Other examples of IN KIND Donations.

PTSD and The Veterans Relief Fund in California 501C3

The charity should provide a written communication or acknowledgement to the donor. For a nonprofit, it is a best practice to send the donor a written acknowledgement that includes the name and EIN of the charity, as well as the date received and a detailed description of the in-kind contribution.

In order for a donor to claim a donation that exceeds $250 as a charitable contribution on his/her federal income tax return, a written acknowledgment must be in the donor’s possession and it should include a statement about whether the donor received any goods or services in exchange for the donation (and if so, the value of the goods or services received).

In addition, for direct donations the nonprofit should also provide a statement of the amount donated (i.e., the face value of the check, stock or the cash received).

(example case)

12 Pounds of Marijuana saved the Smith's marijuana farm from a tax lien sale.  The gift to the nonprofit equaled a $13,000 cash receipt which was immediately applied to the taxes they owed.  The medicine supplied 192 vets with medical marijuana in October of 2017, at the VA hospital in Los Angeles, through a non profit called the Veterans Relief Fund, Inc. a California 501(c)(3) charity corporation. The donation was then credited towards taxes owed, thus making it an IN KIND donation.


Provide Veterans with Relief through your IN - KIND donations!


Can my donor take a tax deduction for in-kind donations?

Your organization just found out it will receive a donation of new laptops for the office. Do you know what type of information to include in an acknowledgement? A board member just found out that the parking and meals he has been paying for on the nonprofit’s time may be deductible. What type of information should be on his tax receipt?

Generally a donor may deduct an in-kind (or, non-cash) donation as a charitable contribution. And a donor must obtain a written acknowledgement from the charity to substantiate the gift, although the acknowledgement will generally not assign a dollar value to the donation.

Not only are the written acknowledgement requirements complex, especially for non-cash donations, but noncompliance can be costly (generally $10 per contribution).

In-kind donations generally fall into one of three categories:

  • Direct payment by a donor of bill owed by the charity to a third party.
  • Donations of goods.
  • Donations of services.

But for in-kind donations, the responsibility is on the donor to value the donation. Nevertheless, the nonprofit may also desire to state something like “were it not for your donation, we would have had to expend $________ to procure such an item.” This can be helpful as a fundraising tool when making major donor lists, for example.

Easiest for the donor and the charity to document and verify are direct payments by a donor of an amount owed by the charity to a third party, such as what was paid to the laptop vendor in our above example. An organization should, of course, confirm with the vendor that the invoice was paid (and not somehow discounted and then paid) and receive written confirmation from the vendor. Once confirmed, the charity may provide a written donor acknowledgement.

But donations of goods are more complicated. The charity must still provide the written acknowledgement to the donor. The value of the donation is up to the donor, as described above, and if believed to be in excess of $5,000 in value is generally obtained from an IRS qualified appraisal. Further, if the charity sells or transfers the goods within three years of receiving, the charity must complete IRS Form 8282 (Donee Information Return) and file with the IRS.

Donations of services are more complicated still. Generally personal services are not deductible, however, the expenses associated with providing such services are. For example, if a business owner authorizes employees to use company time to provide services (such as an associate at a law firm), then payroll and associated costs are deductible, in addition to expenses directly related to the service. It is important for the donor to keep detailed records, such as of the parking and meal expenses in the opening example.

Again the nonprofit charity should provide a written acknowledgement to the donor. This particular acknowledgement should be substantially identical to the other acknowledgements, except that it should not contain a dollar amount for the costs or expenses. Instead it should provide a description of the services and the year of the services. IRS Publication 1771 (pdf) contains examples of appropriate written acknowledgements for non-cash gifts.

A “charitable contribution” is tax deductible for a donor if it is “to” or “for the use of” a charity. Staffers at charities who provide donors with the appropriate written acknowledgements should proceed with caution in acknowledging in-kind donations.

You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases. Aug 6, 2017

prosthetics for the Veterans Relief Fund - donate today

IF you would like to make a in-kind donation to this nonprofit charity, to receive a tax deductable credit or receipt, by a non profit charity that is making a difference for our wounded warriors and soldiers, on location at the (VA) Veterans Hospitals in California. 

Please contact us:

Veterans Relief Fund, Inc. a 501(c)(3)
EIN# 82-3436601

Your donation is saving a life today!

Once the process is understood by your CPA, we can calculate your donation (s), and then apply that towards your tax write offs for either a Gift, or Donation to a 501(C)3 non profit charity in accordance with the laws of California.

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