Having sound governance policies to accomplish an organization’s mission encourages operational and managerial efficiency. Organizations that receive more than $25,000 in non-cash contributions are required to file a Schedule M with their Form 990. For those organizations, they have already been confronted with the question of having a gift acceptance policy. Regardless, if an organization is required to file Schedule M, the adoption of a gift acceptance policy should be considered.
A gift acceptance policy allows nonprofits to educate their staff and board members and to provide guidelines and standards for evaluating whether to accept a gift or not. Some examples of trouble areas include gifts with hidden costs, gifts that do not align with the organization’s mission, and gifts that would require additional resources.
Many nonprofits’ gift acceptance policies are easily accessible and can be found on their websites; therefore, there are many examples to utilize in the initial creation of a policy. Some key aspects to cover in a gift acceptance policy are:
- Mission of organization
- Donor’s conflict of interest
- Restrictions placed on gifts
- Recognition and valuation of gifts
- Reporting requirements
The adoption, implementation, and monitoring of the gift acceptance policy should be a collaborated effort between development officers, management personnel, and designated board members in conjunction with professional advisors.
If you would like to discuss further, please contact your local Blue & Co. advisor today.