by Doug Nash
Gifts in Kind
Gifts in kind is the term used when donors give goods or services instead
of cash. There are numerous reasons why some donors prefer this method. From
distrust in the giving of cash to this method being better suited to both
the receiver and the donor, i.e. donation of precooked or prepackaged food.
Asking for gifts in kind instead of cash gives you extra dimensions when
fundraising. This kind of donations is a real boost when running auctions,
raffles, handing out rewards and other similar activities. You will rarely
be offered a donation of this sort that you can't use to your benefit. Although
some may require a little lateral thinking and imagination to achieve the
You should always make yourself aware of any kind of risks, if any, associated
with any donation, gifts in kind are no exception. Before accepting the donation
you should use common sense and if applicable proper investigation to ensure
that no `nasty surprises are attached to the donation. If you are not sure
then seek proper counsel before accepting the gift.
Here are a few questions to answer to your satisfaction before accepting:
Will you obtain full, clear and proper ownership of the gift? Is it
proper that you accept such a gift?
Does the donor have the right and authority to donate the gift?
What risks and possible costs will your organisation incur by acceptance
and use of the gift?
What are the legal requirements of your organisation? If a receipt
is to be issued on acceptance of the gift? This is concerning gifts of large
value. A rough guide is gifts of over a thousand dollars, but it is your
duty of care that you know exactly what the legal and tax requirements are
in your area or state to determine what is a large value.
What are the ramifications if the donor has a financial or committee
connection with your organisation?
Should you contact an independent valuer before issuing a receipt?
Or is there someone in your organisation that has the expertise and legal
requirements to do the valuation?
These are just a few of the questions that should be answered to your
satisfaction before acceptance. This is not a comprehensive list, so apply
common sense to your situation and don't be afraid to ask questions before
committing yourself. You may be saving your self and your organisation some
painful and costly times ahead.
Apply the old saying 'if it looks too good to be true then it probably
is!' and act accordingly.
Subscribe in a reader
About the Author:
Doug Nash lives in Logan City in Queensland, Australia. He has graciously consented to share a fundraising idea with us every month. Although many of the ideas aren't new, each of them has a unique flair that comes from being developed and refined half a world away from ours. Visit his web site at http://www.home.gil.com.au/~dnash/ for more fundraising ideas.
We promise never to sell, rent, or give your|
email address to anyone else. PERIOD!
The gold standard in nonprofit email newsletter delivery. Custom newsletter templates, funding appeals, event updates & more. 20% nonprofit discount!
7 Essential Steps to Raising Money by Mail
Learn with practical examples, detailed checklists, writing helps and other tools. Sample letters for different types of solicitations and for different nonprofit groups. A step by step guide to writing fundraising letters.
Silent Auction Guide & Toolkit
Learn how to create a successful silent auction fundraiser. Silent auction strategies, timelines, auction items and how to organize and display them, how to close an auction and take payments, and other add on fundraisers to boost the bottom line of your silent auction.
Let's Raise Money
The inside scoop about small group fundraising. Learn from the founder of a national fundraising company as he reveals secrets observed over nearly two decades of fundraising.
Read a Free Excerpt
The Ultimate Guide to Planning a 5K Run or Walk Fundraiser
Plan a successful race from scratch. Proven marketing strategies, find and manage volunteers, maximize revenues, recruit and motivate teams. Checklists, forms, speadsheets, worksheets all included.
Secrets of the Charity Auction Experts
Learn from the experts! Discover the best selling auction items. How to get auction items donated. How to boost attendance. How to get more bids and higher selling prices. How to coordinating volunteers, staff and auction consultants.
Grant Writing for Beginners
Learn how to quickly and easily establish relationships with regional foundations and build a strong base of grant support for your nonprofit.
Read a Free Excerpt