What are the most effective ways to acknowledge in-kind gifts?

1 Determine the value

The first step to acknowledge in-kind gifts is to determine their fair market value, which is the amount that a willing buyer would pay for the item or service in an open market. You can use online sources, appraisals, or estimates from experts to determine the value. You should document the value and the method used for your records and reports. If the value is more than $250, you should also provide the donor with a written acknowledgment that includes the name of your organization, the date and description of the gift, and a statement that no goods or services were exchanged for the gift.

2 Send a thank-you note

The second step to acknowledge in-kind gifts is to send a thank-you note to the donor as soon as possible. The note should express your gratitude and appreciation for the gift, and explain how it will benefit your program and mission. You should also personalize the note with the donor's name, the specific item or service donated, and a story or example of how the gift made a difference. You can send the note by email, mail, or phone, depending on your donor's preference and relationship.

3 Recognize the donor publicly

The third step to acknowledge in-kind gifts is to recognize the donor publicly, if they agree to it. You can do this by featuring the donor on your website, newsletter, social media, or annual report. You can also invite the donor to an event, ceremony, or presentation where you can showcase their gift and thank them in person. You should highlight the impact and value of the gift, and use photos, videos, or testimonials to illustrate it. You should also ask the donor for their feedback and permission before you publish or share any information about them or their gift.

5 Cultivate the relationship

The fifth step to acknowledge in-kind gifts is to cultivate the relationship with the donor beyond the initial acknowledgment. You should keep in touch with the donor regularly, and update them on the progress and outcomes of your program. You should also invite them to participate in your activities, events, or volunteer opportunities, and ask them for their input and suggestions. You should also identify their interests and motivations, and explore ways to deepen their engagement and loyalty. You should also ask them for referrals, testimonials, or reviews, and encourage them to become recurring or cash donors.

6 Evaluate your acknowledgment strategy

The sixth step to acknowledge in-kind gifts is to evaluate your acknowledgment strategy and measure its effectiveness. You should track and analyze the results and feedback of your acknowledgment efforts, and see how they affect your donor retention, satisfaction, and loyalty. You should also compare your acknowledgment practices with the best practices and standards in your sector and industry, and identify any gaps or areas for improvement. You should also solicit feedback from your donors, staff, and board, and use it to improve your acknowledgment strategy and policies.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?