Crafting a Comprehensive Gift Acceptance Policy for In-Kind Contributions
By Amanda Meko, CPA, CGMA
Non-profit organizations often rely on a mix of monetary and non-monetary contributions to advance their missions. In-kind contributions, which include donated goods, services, and even real estate, can be a vital lifeline that helps non-profits stretch limited budgets and maximize impact in their communities. Yet accepting non-cash gifts without a clear set of guidelines can create unanticipated hurdles—from legal complications to costly storage and maintenance expenses.
A well-crafted gift acceptance policy can help an organization focus on the gifts that truly support its mission while shielding it from undue burdens and liabilities. It also helps vet in-kind donations to ensure they truly align with an organization’s mission and capacity, all while promoting fairness and transparency for donors.
Understanding in-kind contributions
In-kind contributions refer to any non-cash gifts provided to a non-profit. This category includes tangible items like furniture, technology, and even real estate, as well as intangible assets such as professional services—from legal representation to graphic design.
One of the greatest appeals of these contributions is that they diversify a non-profit’s resources and reduce the reliance on monetary donations. For example, gift cards can supply flexible purchasing power for specific needs, while pro bono services may allow an organization to access specialized expertise it could not otherwise afford. By welcoming the support of local businesses or individual donors who contribute goods and services, organizations foster ongoing engagement and expand their reach.