Nonprofit Gift Acceptance Policy
Nonprofit Gift Acceptance Policy - At some point in your career, you will be approached by a donor who wants to give you a gift you shouldn't have. Probably because it comes from a string. Or a liability. Or expenses. Or you don't have the staff to do the work required to comply with all the legal requirements associated with receiving this type of gift.
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Nonprofit Gift Acceptance Policy
It will not be difficult for you to get a gift. Say 'yes', okay? When a problem arises, you want to make sure that you know what to do and that you are consistent in what you will/will not accept. The point of creating non-profit gift acceptance policies and putting them in writing is that: Front-line people asking for and/or receiving gifts should be informed in advance of what your non-profit is willing/not willing to accept.
Forewarned. Otherwise, they may find themselves in the sticky situation of asking for a gift that your nonprofit doesn't want to accept. Even worse, they may receive gifts that could land your organization in legal trouble. Or cost you a fortune. Or slip on the edges of ethical practice.
Maintaining a gift recipient policy is good governance because it requires addressing the pros and cons of various scenarios when developing it. For example, at one nonprofit where I was the director of development, I got a call from a donor who wanted to give us a piece of property that was once home to a gas station.
The Purpose Of Nonprofit Gift Acceptance Policies
Our board previously approved guidelines that prohibit the acquisition of such properties because many sites are toxic and unsellable. Of course, the donor hopes to land it because he can't sell it and doesn't want to pay to clean up the hazardous waste. They will receive a tax deduction;
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We'll have a big fat mess. I was able to thank them for thinking of us, express my regret, and inform the donors that our gift acceptance policy does not allow us to accept their donations. On another occasion I was asked to pick up a gift for a cruise ship anchored on the east coast.
We are on the west coast. He had been to the market and knew of potential buyers on the West Coast. He told us the value of the yacht based on what he knew from selling similar boats. All we have to do is transport the vessel across the country, dock it until the buyer is ready and then sell it.
We retain the profits. As good as it sounds, I know a lot about what can go wrong with boat donations, and I have previously recommended to our board that we not accept such gifts. I'm sure you can see that the potential costs (insurance, transportation, storage, maintenance, etc.) pile up.
Nonprofit Gift Acceptance Policies And Procedures Mitigate Against Nightmare Scenarios.
And who knows what a yacht costs? And if the sale is a pre-arranged 'deal', is it really a donation? We don't have the staff to review every possible gift to see if we come forward. One of the main reasons people living outside of an organization's geographic area try to donate real or personal property to a 'foreign nonprofit' is because they can't sell the property.
They troll for a badass mom who's willing to take the trouble and burden so they can save themselves the headache and at least get a discount they can't get a sale on. Another time he was asked to take over an undeveloped property. The donor told me what he paid and what he expected fair market value to be.
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Our gift recipient policy requires us to first conduct a property value market assessment and an environmental impact report. I can inform the donor that we can accept their property based on this review. When I knew what our sale price would be and had a clean bill of health, I called the donor back and let him know.
Although he believed the property was worth much more, he was satisfied with this amount as a donation. This way, we avoid any surprises and ensure that the donor is satisfied with the transaction. A nonprofit gift recipient policy specifies what, who, when, how and where different types of gifts must be accepted.
Nonprofit Gift Acceptance Policies And Procedures Mitigate Against Nightmare Scenarios.
They typically include: Nonprofit gift recipient policies that provide an objective way to decline gifts but still maintain a good relationship with the donor. You may send your written policy to contributors to ensure that any type of gift is refused; It is only a result of established policy.
Your gift acceptance 'roadmap' is a guide only, and should allow for rare exceptions where appropriate. Your policy should outline the review process; Any deviation from your standards must require the written, well-reasoned approval of a specific person (eg, CEO; executive committee; endowment or development committee).
You don't have to reinvent the wheel. You can find an example of the Nonprofit Council's Gift Acceptance Policy here. You can also find a sample of Kathryn Miree that I have used over a non-profit. However, don't take a completely cookie-cutter approach to pursuing your policy.
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This sample is your starting point. The policy you develop should be tailored to reflect your organization's mission, size, special characteristics, and resources. Engage all key players including the board, management, development staff, finance staff and program administration staff. Start with a self-assessment of what your organization can do.
Your Road Map For Gift Acceptance
For example, if you received a chess collection (this happened when one of our donors turned out to be a famous ex-chess champion and was looking for a place to keep his collection permanently), could you be out-of-pocket and ongoing? Costs like appraisal, insurance, storage and display?
Think about the skills you need, and determine whether you can realistically find and connect with such resources (eg, appraisers; environmental analysts; real estate brokers and legal and financial advisors). Include guidelines for all types, forms and purposes of gifts. As applicable, include language about charitable donations, special offers, naming opportunities, and all dollar limits and pledge restrictions.
If you accept a trust, indicate why your organization is willing to serve as a trustee. If you receive a limited gift, indicate the limits of what you will/will not accept. Be sure to clearly state that gifts beyond your scope or the opposite are rejected.
These things may change over time, so be sure to review your policy annually. Describe the important features. If there is a type of property you want to acquire, but are waiting for review, include a checklist in your policy to serve as your guide.
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