Every nonprofit organization should have a gift acceptance policy (GAP) in place to guide its staff, board members, and volunteers on the types of gifts the organization accepts, the process for evaluating gifts, and the procedures for managing and recording gifts. A GAP helps ensure that the organization is accepting gifts in a responsible and ethical manner, and that it is complying with all applicable laws and regulations.
While there is no one-size-fits-all nonprofit gift acceptance policy template, there are certain elements that all GAPs should include. These elements include:
A statement of the organization’s mission and values, and how gifts will be used to support those goals.
A list of the types of gifts that the organization will accept, including cash, property, securities, and in-kind gifts.
A process for evaluating gifts, including a review of the gift’s purpose, its potential impact on the organization, and any potential conflicts of interest.
Procedures for managing and recording gifts, including a system for tracking gifts, acknowledging donors, and issuing receipts.
Benefits of Having a Nonprofit Gift Acceptance Policy
There are a number of benefits to having a nonprofit gift acceptance policy in place. These benefits include:
- Ensures that the organization is accepting gifts in a responsible and ethical manner. By establishing clear guidelines for accepting gifts, a GAP can help the organization avoid accepting gifts that could compromise its mission or reputation.
- Helps the organization comply with all applicable laws and regulations. There are a number of laws and regulations governing the acceptance of gifts by nonprofit organizations. A GAP can help the organization ensure that it is complying with all of these requirements.
- Provides guidance to staff, board members, and volunteers on the types of gifts that the organization will accept, the process for evaluating gifts, and the procedures for managing and recording gifts. A GAP can help to ensure that everyone involved in the gift acceptance process is aware of their roles and responsibilities.
- Promotes transparency and accountability. By having a clear gift acceptance policy in place, the organization can demonstrate to donors, the public, and regulators that it is operating in a transparent and accountable manner.
Elements of a Nonprofit Gift Acceptance Policy
The following are some of the key elements that should be included in a nonprofit gift acceptance policy:
- Statement of Purpose: This section should describe the organization’s mission and values, and how gifts will be used to support those goals.
- Types of Gifts Accepted: This section should list the types of gifts that the organization will accept, including cash, property, securities, and in-kind gifts. The policy should also specify any restrictions on the types of gifts that the organization will accept.
- Gift Evaluation Process: This section should describe the process for evaluating gifts, including a review of the gift’s purpose, its potential impact on the organization, and any potential conflicts of interest.
- Gift Management and Recording Procedures: This section should describe the procedures for managing and recording gifts, including a system for tracking gifts, acknowledging donors, and issuing receipts.
- Conflict of Interest Policy: This section should describe the organization’s conflict of interest policy, and how it will be applied to the acceptance of gifts.
- Recordkeeping Requirements: This section should describe the organization’s recordkeeping requirements for gifts, including the types of records that must be maintained and the length of time that records must be retained.
- Review and Update: This section should describe the process for reviewing and updating the gift acceptance policy, and how often the policy will be reviewed.
Conclusion
A nonprofit gift acceptance policy is an important tool for managing the organization’s gift program. By having a clear and comprehensive policy in place, the organization can ensure that it is accepting gifts in a responsible and ethical manner, complying with all applicable laws and regulations, and providing guidance to staff, board members, and volunteers. A GAP can also promote transparency and accountability, and help to build trust with donors.
Creating a nonprofit gift acceptance policy template can be a daunting task, but it is an essential step for any organization that wants to manage its gift program effectively. By following the tips in this article, you can create a policy that meets the needs of your organization and helps you to achieve your fundraising goals.
FAQ
What is a nonprofit gift acceptance policy?
A nonprofit gift acceptance policy is a document that outlines the types of gifts an organization will accept, the process for evaluating gifts, and the procedures for managing and recording gifts. It is an important tool for ensuring that the organization is accepting gifts in a responsible and ethical manner and complying with all applicable laws and regulations.
Why is it important to have a nonprofit gift acceptance policy?
There are a number of reasons why it is important to have a nonprofit gift acceptance policy in place. These reasons include ensuring that the organization is accepting gifts in a responsible and ethical manner, complying with all applicable laws and regulations, providing guidance to staff, board members, and volunteers, promoting transparency and accountability, and building trust with donors.
What are some key elements that should be included in a nonprofit gift acceptance policy?
Some key elements that should be included in a nonprofit gift acceptance policy include a statement of purpose, a list of the types of gifts accepted, a gift evaluation process, gift management and recording procedures, a conflict of interest policy, recordkeeping requirements, a review and update process, and a section on how the policy will be communicated to donors.
