NEIGHBORHOOD INVESTMENT PROGRAM
GUIDE FOR PROCESSING IN-KIND DONATIONS
Eligible professions are limited to: accountants, lawyers, architects, doctors, and other licensed
medical professionals (e.g., dentists and nurses)
In-Kind services will not qualify as an eligible contribution unless the services are:
 Reasonably priced and valued.
 Reasonably necessary services, of the type normally provided by the contributor in their normal
course of business to customers, clients, or patients.
 Not reimbursable from sources other than the tax credit provided by the NIP.
In-Kind services cannot exceed 25% of the total donations received by an organization.
In-Kind services cannot exceed 25% of the total donations by an individual donor. If a donor
wishes to receive NIP tax credit for his in-kind donation, he/she must also make a donation of cash,
property or stock.
Only 75% of the fair market value of the service is eligible for NIP tax credit.
 Fair market value for accounting, architectural and legal services is based on the
reimbursement rate for court-appointed attorneys in criminal cases (in-court rate).
The current rate is $65/hour.
 Fair market value for medical services is based on PEIA reimbursement guidelines.
Contact PEIA at (304) 558-6244 for rates. Rates for services will vary.
In-Kind Examples
Example 1: Major Issue to Consider: In-Kind services can be only 25% of total donation.
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A doctor performs a medical service for a participating organization.
After consulting the PEIA guidelines, it is determined that the service is valued at $200.
The eligible portion of the contribution is 75% of the value of the service (.75 x $200 = $150).
Since no more than 25% of the doctor’s contribution can be in the form of in-kind services, he must
make a cash, stock, or property donation for at least three times the total in-kind contribution.
The doctor would need to donate at least $450 ($150 x 3 = $450) in cash, stock, or property in
addition to the in-kind donation.
If he did donate another $450, his total contribution would be $600.
($150 in-kind + $450 cash, stock, or property = $600 total donation)
He would then be eligible for $300 in tax credit ($600 x .50 = $300).
Example 2: Major Issues to Consider: In-Kind services can only be 25% of total donation and the
minimum contribution eligible to receive credit is $500.
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A lawyer performs a service that would be worth $100 based on the court-appointed attorney rate.
The eligible portion of the donation is $75 (.75 x $100 = $75).
In order to comply with the 25% limit on individuals, in addition to his $75 in-kind donation, he would
need to donate at least $225 in cash, stock, or property ($75 x 3 = $225).
However, if he donates $225, he will still be under the $500 minimum donation, and ineligible for tax
credit. So, to be eligible for credit, his cash, stock, or property donation would need to be $425 to
bring him up to the minimum donation level.
If he donates $425 in cash, stock, or property in addition to his $75 in-kind donation, he will be
eligible for $250 in tax credit ($425 + 75 = $500 total donation. $500 x .50 = $250 tax credit).