Gift Acceptance Policy
Posted on Wednesday, May 01, 2019 Share
It is not uncommon for nonprofits to receive noncash donations from donors. Investments, artwork, vehicles and real estate are a few examples of noncash gifts. But just because a donor wants to give your organization something, should you accept it?
Some gifts may seem like a good idea but actually have additional requirements or added costs that may make it more advantageous to not accept the gift. For example, a donor may decide to donate a building to your nonprofit. Is your nonprofit able to support the ongoing costs of owning a building – insurance, maintenance, utilities, repairs, additional staff costs, etc.? Are there extra costs involved to renovate the building or make improvements so that it can be used by your nonprofit?
This is why it is important to have a gift acceptance policy in place. A gift acceptance policy provides direction to donors and staff to the types of gifts the organization will accept. The policy should include specifically what types of gifts will be accepted. Make sure to clearly communicate your gift acceptance policy to donors to help guide them on how they can support your organization.
Having a gift acceptance policy in place provides a consistent way to deal with any unusual gifts that come up. Staff can then refer to the policy as to why the organization may not be able to accept certain gifts.
Posted by: Carrie Minnich, CPA
Posted in Mission Minded Nonprofits
Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.