Check your local laws, but here's something I googled up:
Australian Accounting Standard AAS 29 Financial Reporting by Government Departments
requires contributions of services to be recognised as assets and revenues when and only
when the fair value of those services can be reliably determined and the services would have
been purchased if they had not been donated (emphasis added). Under the AASB’s strategy
for Australian Accounting Standards applicable to public sector entities, the requirements for
government departments would be conformed to those applicable to other not-for-profit
entities (including requirements in any revision of AASB 1004).
- Australian Accounting Standards Board
So assuming your in-kind entry was to be recognised, consider entering it as any other item, with the fair value entered in the appropriate place.
For example, if someone donated a hall hire worth $100, enter an expense "Hall Hire" of $100 against income account "Donations", “In-kind Donations” “Donated Goods and Services”, or similar.
Disclaimer: I'm not an accountant; please seek appropriate professional advice.