Film Accounting Glossary
In-kind contribution
What is an in-kind contribution?
Also called in kind, or donated goods or services.
An in-kind contribution is goods or services provided to a production at no charge or below market value, such as a donated location, a loaned vehicle, or a promotional partner's product.
In-kind value reduces the cash budget but usually does not count as qualifying spend for incentive purposes, since nothing was actually paid. Contributions still need documenting, because they carry insurance, clearance, and sometimes tax consequences.
Example
A dealership lends six vehicles worth $9,000 of rental value at no charge. Cash budget drops $9,000, but because nothing was paid, most incentive programs will not count it as qualifying spend, so the credit does not move.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Documented for insurance, clearance, and sometimes tax reasons even though no money changes hands. Excluded from most qualifying-spend calculations.
Common mistake
Counting in-kind value as qualifying spend. Nothing was paid, so most incentive programs will not credit it, however real the value to the picture.
Related questions
- Does an in-kind contribution count for tax incentives?
- Usually not, because no payment was made. Programs generally credit actual expenditure rather than the value of donated goods or services.
- Do in-kind contributions still need documenting?
- Yes. Insurance, clearance, and sometimes tax consequences attach even when no money changes hands, and the arrangement should be papered.