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Volume
3, Issue 3 - June 2001 |
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| Sure!
You'll Take It ... Or Will You? |
If it hasn't happened to you already, I am sure it will some day. A prospective donor calls to offer your agency some property in the hinterlands with no access. Or a prospective sponsor for your special event appears to be in conflict with your agency's mission.
A Gift Acceptance Policy, developed by staff and approved by the Board of Directors, will eliminate any question about whether a particular gift is appropriate, or even needed. This pertains to both in-kind and cash donations. Some agencies leave the issue of gift acceptance up to the Board as the final authority.
There are many things that donors can give you, of course, other than money and your staff and volunteers should be ready to take advantage of opportunities as they arise.
An internal audit will identify what kinds of goods, services or other in-kind contributions are needed. Develop a menu of needs. Include such things as services (legal, accounting, printing, maintenance, and the like), securities and real property, tangible operating expense items, etc.
Identify what types of contributions might be deemed unacceptable as they might conflict with your agency's core values, be controversial or just not be needed or useful.
Next, draft a Gift Acceptance Policy. Clearly state what is acceptable and what is not acceptable. Leave nothing to the imagination and be specific! Include donor recognition levels to ensure equitable treatment and reduce confusion.
After the Board accepts the policy, distribute it to volunteers and staff. Include a copy of the needs list in new Board and staff orientation.
Discuss the needs when planning fundraising campaigns. Impress upon fundraising volunteers that money isn't all prospective donors have to give. Often, getting in-kind contributions is a great way to get a new volunteer into fundraising gear because "things" are easier to ask for than money!
But, beware! Don't allow donors of in-kind contributions to suck you into assessing a value for the gift. This is really important! See the article on page 2 which describes your agency's responsibilities in valuing a non-cash contribution.
Basically, DON'T DO IT!
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Valuation of
In-Kind Contributions
OK, we're talking about the IRS here, so listen up.
You have done a terrific job of generating tons of in-kind resources for your agency. The donors expect you to give them a receipt for services or goods with a value assessed so they can deduct the contribution.
Don't do it! According to IRS Publication #1771, Donor's Substantiation
Requirements, beginning January 1, 1994, the responsibility for substantiation lies with the donor, not the recipient (but good relationship-building says the nonprofit should be ready to provide this substantiation).
Your agency should be ready to provide substantiation of any cash gift over $250 in a given year, noting whether the donor received anything of value in exchange and estimating its fair market value. For example, if the value of a dinner ticket is $25 and the donor pays $75, he can deduct $50.
But if the donor gives a car load of clothes to your bargain sale, you should only itemize the donations and never assess a value to them. That is the responsibility of the donor. There is a risk to your agency of being accessory to fraud if the donor assesses an inflated value to her donations!
I suggest that you make standard forms as receipts for in-kind contributions which don't show a $ ________ so that well-meaning staff and volunteers aren't tempted to assess a value. Better yet, on your receipts, cite the IRS Publication #1771 as a guideline which tells you not to assess value.
Want more information? Go online to www.IRS.gov
and copy Publication #1771 for yourself. And get professional advice from a CPA who understands nonprofit accounting to protect your staff and volunteers from making a serious mistake.
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More Great Internet
Resources for Nonprofits
Looking for a new job? Several sites can help. Go to
www.charitychannel.com, www.idealist.org/career,
www.cof.org (Council on Foundations),
www.philanthropy.com/jobs (Chronicle of Philanthropy Career Network).
Once again I remind you about a great site I enjoy. Subscribe (free) to the Internet Insider for Grantseekers and Fundraisers at
www.efsinternet.com.
I also recommend Abe's Grant Reports for only $50/year and get a daily update on federal and private foundations and grants. Send check to Abe's Email Reports, 1546 East 22nd St., Brooklyn, NY 11210.
Want to know more about individual giving in the USA? The American Association of Fundraising Counsel (AAFRC) has some nifty pie charts showing how $190.16 billion given in 1999 breaks down by source of contribution and recipient organization. Visit
http://www.aafrc.org/trust/charts.html.
More detailed information on individual contributions, listed by state, can be found at
www.nccs.urban.org, the site for the National Center for Charitable Statistics.
Find copies of nonprofit IRS 990 reports (including yours) on the Internet at
www.nccs.urban.org/990/.
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2nd Edition of Fast Fundraising Facts For Fame & Fortune Is Now Available!
This book puts the FUN into FUNDraising!
First published in 1997 and now in its second printing, this book "teaches the basics and helps the seasoned professional remember what works. Jean’s high energy, conversation style makes this book fun to read. She fills it with examples that stimulate your creativity" says Marlis Hadley, president of the Easter Seal Society of NM.
Who should read this book? Volunteers and staff of any nonprofit agency, church, school, support group or membership organization – anyone who is charged with raising money or in-kind contributions.
This book is the perfect gift for a staff member or a volunteer Board member who needs a gentle nudge into fundraising success. Call me at (505) 899-1520 to discuss volume discounts.
| HERE’S WHAT YOU'LL FIND IN THIS GREAT FUNDRAISING BOOK: |
Marketing and Fundraising— What’s the Link?
The You : Me Ratio and what to do about it.
Selling vs. Opportunity.
The Secret of Money and How to Get It!
Jean’s 10 Rules for Fundraising Success:
Ask for What You Want or Take What You Get...Create Opportunities...Assume a YES!...If Your Prospect Says Yes
Immediately, You Blew It...Never Speak to the Person Who Can Say NO...NO Won’t Make You Shrivel and Die...People Give to
People...Back A Winner...You Can’t Ask Others to do What You Haven’t Done...Thank You.
Planning Made Easy.
Ways to Raise Money—Lots of Great New Ideas.
The Etiquette of Asking.
Sources of Resources … and much more.
Order Now So You Don't Forget!
Go to the Order Form to order your copy of
Fast Fundraising Facts For Fame & Fortune ©
|
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My
Mission:
To strengthen the base of support for America's worthwhile
nonprofit agencies and organizations, from school PTAs to
multi-million dollar national and international agencies.
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What People Say
About Jean Block
"I attended [your workshop] and thought it was one of the best I have been to. The day was full of great information that I could actually use!"
Marlene Lewis, Alton, IL
" Normally I'm not big on fundraising, but what you said made me feel empowered."
Callie Heyl, Greensboro, NC
"If all teachers could be this motivating, we'd all be more productive."
Libba Skarnulis, Houston, TX
Jean Block
Consulting, Inc.
7915 Cliff Road NW
Albuquerque NM 87120
(505) 899-1520
Fax (505) 890-5285
Email:
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