Many nonprofit organizations struggle to make payroll and meet other immediate needs. If your organization is in this position, you might want to seek opportunities for larger financial gifts. Large gifts can help your organization build sustainably, hire staff with confidence, and take on more mission-based work. Even a single large gift placed in an interest-bearing account can bring financial security by providing a certain percentage of your organization's annual income. This security is due to the time and money you will save by not having to raise those funds from other sources.

Gift-giving does come with some additional work for your organization. Before you put planned giving and large gifts in your fundraising plan, consider how your board will manage the added responsibilities.

Adopt a Gift-Acceptance Policy

Your nonprofit organization's long-term strategy for sustainability and growth should include a policy for accepting gifts. A gift-acceptance policy can protect your organization from considerable costs and liabilities down the road. Having a clear policy in place prior to receiving a gift can also avoid hurt feelings and the potential loss of a donor's support. A comprehensive gift-acceptance policy will include these elements:

• Your organization's mission statement and purpose
• The purpose of your gift policy and guidelines for the use of legal counsel
• A clearly defined donor conflict-of-interest statement
• A clear statement about receiving gifts with restrictions
• The role of the gift acceptance committee in reviewing the gift
• A statement about the donor's responsibility for paying legal and professional fees
• A statement about how the gift will be valued in the organization's books
• A statement about the filing of IRS forms
• A statement about how the gift will be acknowledged

The Planned Giving Design Center offers an example of a gift-acceptance policy (PDF, 85 KB).

Generally, once a nonprofit board has crafted a gift policy, the organization will receive lots of gifts. Therefore, your board is likely to be rewarded immediately for its policy work.

Avoid Unnecessary Expenses

Large gifts can come in many forms. Real estate, stocks, bequests, and retirement plan pay-outs are just a few examples. Even frequent-flyer miles can be gifted, although accounting for their value can get complicated (adapted from Kathryn Miree, Planned Giving Design Center, 2000). Therefore, your gift-giving policy should prevent your organization from accepting gifts that will require an excessive amount of time or money. For instance, a well-meaning supporter may give you a piece of property she believes will sell for a significant amount of money. Potential buyers may not feel the same way. If you cannot sell the property for the amount your donor believes it is worth, you may end up with an ongoing property maintenance expense.

The process of creating a gift-acceptance policy can also help your board come together around its goals and the issues involved with different kinds of gifts. For instance, gifts often come with a need for legal services. If your board does not discuss what kinds of gifts it might receive, the need for legal counsel might not come up until after your organization has accepted a gift.

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