Gift Acceptance Policies

The redesigned 990 asks on Schedule M whether a nonprofit has a “gift acceptance policy” that requires the review of any "non-standard gifts" (gifts other than cash or check). To help you develop an appropriate policy for your nonprofit, the National Council offers these resources:

• The Chicago chapter of the Association of Fundraising Professionals enlisted the help of local lawyers to write a helpful article that illustrates why your nonprofit may need a gift acceptance policy.
• "Why you need gift acceptance policies," a white paper by Blackbaud, encourages all nonprofits, even those with relatively straightforward fundraising practices, to have a policy in place because it reduces risk to the nonprofit but also helps cultivate better relations with donors.
• For a head start in drafting a gift acceptance policy for your nonprofit, review these sample gift acceptance policies from the Nonprofit Risk Management Center, but please be sure to tailor your nonprofit's policy to your own needs.
• For more information about fundraising, we encourage you to review the National Council’s fundraising resources.

Options to Consider When Drafting a Gift Acceptance Policy:

1. Who is the audience for your gift acceptance policy? Will the policy help guide prospective donors who are considering a gift? Or is the policy only for staff and board members? 
2. If the policy is for donors as well as board/staff, will it be linked from the nonprofit’s website, and if not, how will it be distributed so that individuals who are considering a gift can be informed about the policy?
3. How will the mission of the organization and the policy be related? Should you include a statement that only gifts/contributions that can be used/expended consistent with the mission of the organization be accepted?
4. Will the policy require that prior to accepting certain gifts, the nonprofit will conduct a review and/or consult with legal counsel?
5. Should the policy identify circumstances or make reference to the fact that in certain situations donors should seek professional advice prior to making a gift, and that the nonprofit will not provide advice directly to the donor because that would pose a conflict of interests?
6. Will the policy identify acceptable restrictions that a donor may place on a gift?
7. Should the policy provide that certain gifts will be referred to a “Gift acceptance committee”—comprised of individuals with appropriate expertise and experience to evaluate gifts and decide whether or not to accept them?
8. Should the policy identify particular types of contributions that are or are not acceptable to the nonprofit?
9. Should the policy spell out who is responsible for providing written acknowledgements of gifts and filing specific IRS forms for certain types of gifts or simply that the nonprofit will comply with IRS regulations?
10. Will the policy be evaluated from time to time, and who should conduct the review?