A gift acceptance policy guides a nonprofit in the types of gifts it can accept and educates the staff and board about critical issues triggered by certain gifts, according to attorney Kathryn W. Miree.
A carefully thought-out policy answers questions such as:
- What types of gifts will the organization accept, and what will it not accept?
- Under what circumstances will gifts be accepted?
- How will gifts be recognized and tracked?
- How will major gifts like real estate, life insurance policies, and stock be handled?
Why have a gift acceptance policy? According to attorney Gene Takagi:
"Schedule M (Non Cash Contributions) of the new Form 990 asks whether the filing organization has a gift acceptance policy. Schedule M must be filed by organizations that either: (1) received more than $25,000 in non-cash contributions; or (2) received contributions of art, historical treasures, or similar assets, or qualified conservation contributions. Even if an organization is not required to complete Schedule M, it should consider adopting a gift acceptance policy."
Finding Examples
Many nonprofits state their gift acceptance policies on their web sites. Try an Internet search for the keywords "nonprofit gift acceptance policy". For more specific results, add keywords for your subject area, e.g., "youth organization".
However, please note that policies are specific to the organization and its mission. Reviewing other nonprofits' policies can be instructive, but consider carefully your organization's own needs and priorities when creating your own.
See also our related Knowledge Base articles:
Gift Acceptance Policies
National Council of Nonprofits
Why you should have one and what it should say, plus links to examples.
Charitable Contributions
Internal Revenue Service
Take a look at the IRS rules for charitable contributions before working up that gift acceptance policy.
Gift Acceptance Policies (PDF)
Adler & Colvin
Gift Acceptance Policies - Why, When, What, How and Who - Reprinted with permission from Charitable Gift Planning News.
Nonprofit Law Blog: Donation Policy
Controversial Donations
The Nonprofit Law Blog is published by California nonprofit attorney Gene Takagi. This post give guidance on establishing a gift and donation acceptance policy.
Sample Gift Acceptance Policy (PDF)
Cape Cod Community College Educational Foundation
This supporting organization, which helps to raise funds for a community college, offers an outline of its gift acceptance procedures.