Identify what's helpful — and don't feel obligated to accept everything
In-kind contributions can be a valuable source of support for nonprofits of any size. If you accept in-kind contributions, keep these dos and don'ts in mind.Do:
- Identify in-kind donations that could benefit your nonprofit (such as professional assistance from a lawyer or accountant, advertising space or office supplies)
- Accept donations of helpful goods, services and time
- Build relationships with in-kind donors
- Create an in-kind gift acceptance policy that identifies what gifts are appropriate
- Sign gift agreements with in-kind donors where relevant
- Accurately record the market value of donated goods and services
- Follow local rules or regulations for reporting in-kind contributions on tax forms
- Thank donors of in-kind gifts and provide them with any relevant tax information
- Evaluate the impact of in-kind donations on your organization
Don't:
- Accept gifts that will be more trouble to manage than they're worth (such as real estate or live animals, in some cases)
- Be afraid to decline in-kind gifts that aren't useful (such as services you don't need)
- Feel that you must accept in-kind services you find unsatisfactory
- Overestimate or underestimate the cash value of in-kind gifts
- Exclude in-kind donations from your budget
- Forget to acknowledge or report in-kind donations
References
Grant Thornton: Gifts in kind: New look at conventional revenue stream by Jennifer Hoffman and Dennis Morrone (2014)Karen Eber Davis Consulting: Can your nonprofit obtain more income? The 7 sources
