In-kind contributions explained for local candidates

Your neighbor owns a print shop and offers to run your door hangers for free. Your cousin caters your kickoff and won't take a dime. A supporter buys a box of yard signs and drops them on your porch. These are generous gifts, and in most states they are also campaign contributions.

They're called in-kind contributions. Handled correctly, they're a normal and welcome part of a local campaign. Ignored, they can make your finance reports wrong and push a donor over the legal limit without anyone noticing.

What counts as an in-kind contribution

An in-kind contribution is something of value given to your campaign other than money. The Texas Ethics Commission puts it simply: a contribution of goods or services is an in-kind campaign contribution. South Carolina's definition of a contribution likewise includes in-kind contributions along with gifts, loans and advances.

Common examples in a local race:

Printing, signs or mailers that someone else pays for
Food and drinks donated for a campaign event
Free use of a room that normally rents for a fee
A photographer's paid services provided for free
A business discount that isn't available to regular customers
Postage, ads or online services paid for by a supporter
Someone else paying a person to work on your campaign

The key question is this: would your campaign have had to pay for it otherwise? If yes, and someone else covered the cost, you are probably looking at an in-kind contribution.

Volunteer time is usually different

Here's the good news for small campaigns. Unpaid volunteers knocking doors, stuffing envelopes or making phone calls generally are not making a contribution.

South Carolina's State Ethics Commission says the definition of contribution excludes uncompensated volunteer personal services. In Texas, the local filer guide says a contribution of personal services is not reported if the person receives no compensation from any source for the services, and personal travel is treated the same way if no reimbursement is received.

The line moves when money enters the picture. If someone's employer pays them to work on your campaign during work hours, or a supporter pays a person to help you, that can become a contribution. At the federal level, for contrast, the FEC says that if someone other than the campaign pays a volunteer, the campaign must report that payment as an in-kind contribution. Check how your state handles it.

Putting a value on it

Every in-kind contribution needs a dollar value for your records and reports. The usual approach is to use what it would normally cost to buy the same thing. South Carolina's ethics commission has told candidates that in-kind contributions must be reported at their fair market value. The Texas guide says reports must disclose the value and nature of each in-kind contribution.

To make valuing easy:

Ask the donor for a receipt or invoice showing what they paid.
If a business donated its own services, ask for a statement of its normal price.
For a discount, record the difference between the normal price and what you paid.
Write a short description: what it was, who gave it and the date.
Keep the paperwork in the same folder as your other receipts.

Don't guess low to make a gift seem smaller. A realistic value protects both you and the donor.

Limits and who can give

In-kind gifts aren't a way around contribution limits. South Carolina's ethics commission says in-kind contributions are subject to contribution limits, and the state's limit for an individual giving to a local candidate is $1,000 per election. So a supporter who donates $600 worth of printing and then writes a $500 check would be over that limit. Federal rules work the same way, since the FEC counts the value of an in-kind gift against the contributor's limit.

Who is giving also matters. Some states restrict or ban contributions from certain sources, such as businesses. The Texas Ethics Commission says political contributions from labor organizations and most corporations are prohibited. If a business offers you free services, find out whether your state allows that business to contribute before you accept.

This is why your ledger should keep a running total for each donor that includes both cash and in-kind gifts.

Recording and reporting in-kind gifts

Treat an in-kind gift like any other contribution in your records, with a few extra details:

Log the date you received the goods or services.
Record the donor's name and address, plus anything else your state asks for.
Enter the value and a clear description.
Add the value to the donor's running total and check it against any limit.
Report it on the right schedule or line of your finance report.

Report forms handle in-kind gifts in different ways. Some have a separate section. Some ask you to list the gift as both a contribution received and an expense, so your cash balance stays accurate. That's how the FEC asks federal committees to do it. Follow your state's form instructions, and see campaign finance reports explained for the bigger picture.

Talking with donors about in-kind gifts

Most supporters have no idea their kind gesture has paperwork attached. Thank them warmly, then explain simply: "This is a real help. The law treats it as a contribution, so I need to record what it's worth. Could you send me the receipt?"

That small conversation keeps your reports accurate and shows donors you run a careful campaign. It's also a good moment to write their name into your thank-you list. For more on asking for support, read raising your first dollars, and keep the habits in campaign recordkeeping basics so nothing slips through.

Common questions

What is an in-kind contribution?

It's a gift of goods or services to your campaign instead of money. Donated printing, food for an event, free use of a paid service or a business discount not offered to everyone are common examples.

Is volunteer time an in-kind contribution?

Usually not, as long as the volunteer isn't being paid by anyone for that work. South Carolina and Texas both treat uncompensated volunteer services differently from donated goods. Check your state's definition.

Do in-kind contributions count toward contribution limits?

In many states, yes. South Carolina's ethics commission says in-kind contributions are subject to contribution limits, so a large donated item can use up part or all of a donor's limit.

How do I figure out what an in-kind gift is worth?

Use what it would normally cost to buy the same thing. Ask the donor for a receipt or invoice showing the price, and keep it with your records.

Sources

Rules change. Always confirm with your own state and local election offices.