An in-kind contribution is a non-monetary contribution. Goods or services offered free or at less than the usual charge result in an in-kind contribution. Similarly, when a person or entity pays for services on the committee’s behalf, the payment is an in-kind contribution. An expenditure made by any person or entity in cooperation, consultation or concert with, or at the request or suggestion of, a candidate’s campaign is also considered an in-kind contribution to the candidate.
Reporting on Form 3X
Party committees report making an in-kind contribution on Form 3X, Line 23. The committee must itemize contributions to federal candidates on Schedule B for Line 23 regardless of the amount of the contribution. The party committee reports the date the good or service was provided as the date of the contribution.
In addition, payments for in-kind contributions are often made on a different day than the date the contribution was provided to the campaign. In this case, the party committee will also report the payment made for the in-kind contribution as a memo entry on Schedule B for Line 21(b).
Step 1: Reporting the in-kind contribution
On Line 23, the committee discloses:
- The vendor, the vendor’s address, the date the in-kind was provided to the candidate, and the amount
- A clear purpose of disbursement and an “in-kind” notation
- Information about the candidate receiving the in-kind, including their name, office sought, state and, if applicable, congressional district, and election.
Step 2: Reporting the payment as a memo entry
In this case, the party committee paid the vendor after the good or service was provided. This means that the committee will report a memo entry on Line 21(b) that discloses the date the committee paid the vendor.
Reporting with FECFile
To enter an in-kind contribution given to a candidate, go to the Summary Page tab, right click on “Line 23 Contributions to other federal candidates and political committees” and select ”new.”
To enter an in-kind payment as a memo entry, go to the Summary Page tab, right click on “Line 21(b) Other federal operating expenditures” and select ”new.” Check the “memo” box.