‍Top 3 Takeaways

1. A gift acceptance policy protects your mission by ensuring your organization only accepts gifts that align with your values, capacity, and long-term goals.

2. Not all gifts are beneficial. The policy provides a consistent, respectful way to evaluate and decline complex or impractical donations.

3. Clear governance and defined roles help staff and board members handle unusual or high-risk gifts confidently, reducing confusion and supporting strong decision-making.

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Why a Gift Acceptance Policy Matters

A gift acceptance policy helps nonprofits decide which gifts to accept, decline, or review more carefully. While most donations are straightforward, some—such as real estate, business interests, restricted gifts, or high-value in-kind donations—can bring financial, legal, or administrative complications. A clear policy protects the organization, supports consistent decision-making, and ensures that every accepted gift aligns with the mission.

Understanding Non-Standard or Hard-to-Manage Gifts

The IRS uses the term “non-standard contributions” for gifts that are difficult to use, sell, or value. In practice, most nonprofits encounter something slightly different: gifts that are well-intentioned but simply not practical to accept—such as outdated equipment, items requiring costly upkeep, or donations that would distract staff from their core work.

A gift acceptance policy provides an easy, respectful way to handle these situations. Instead of explaining complexities to a donor, staff can simply say, “Our gift acceptance policy doesn’t permit us to accept this,” which keeps the conversation positive and consistent.

How the Policy Works in Daily Operations

The policy outlines what types of gifts the nonprofit will accept, when additional review is needed, and who is responsible for approving complex gifts. This includes not only unusual or hard-to-value items, but also certain deferred or planned gifts—such as bequests, life insurance policies, or gifts intended for endowment—which may require careful review to ensure they support long-term stewardship and organizational capacity.

It helps staff and board members know exactly how to proceed when a donor offers something unusual or when an estate gift presents assets that may not be appropriate to accept. For routine gifts like cash or publicly traded securities, the policy ensures efficient handling. For more complex gifts, it guides next steps—such as due diligence, valuation, or referral to the Gift Review Committee.

Keeping the Policy Current

Reviewing the policy regularly keeps it aligned with the nonprofit’s mission, resources, and legal requirements. With a thoughtful gift acceptance policy in place, nonprofits strengthen governance, manage risk, and create clear, mission-supportive pathways for donors who want to help.

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To help you get started, we’ve included a sample Gift Acceptance Policy template that your organization can customize to fit your mission, resources, and governance structure.

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FAQs

1. What is a gift acceptance policy and why does a nonprofit need one?

A gift acceptance policy is a set of guidelines that helps a nonprofit decide which gifts to accept, decline, or review more closely. While most donations are straightforward, some gifts, such as real estate, restricted assets, or certain planned gifts can bring financial, legal, or administrative challenges. The policy protects the organization, supports strong governance, and ensures that every accepted gift aligns with the nonprofit’s mission and capacity.

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2. How does the policy help with non-standard or complex gifts?

Some gifts like real estate, business interests, certain planned gifts, or items that are hard to value or sell require additional review. These are often referred to as “non-standard contributions.” In practice, nonprofits also use the policy to manage offers of gifts they simply cannot use or maintain. The policy provides a consistent, respectful process, allowing staff to say, “Our gift acceptance policy doesn’t permit us to accept this,” rather than explaining complex reasons to a donor.

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3. How is the gift acceptance policy used in day-to-day operations?

Staff and board members refer to the policy whenever a donor offers something unusual or complex, including certain deferred or estate gifts. The policy outlines when due diligence is needed, who should review the gift, and the steps for approval. For routine gifts like cash or publicly traded securities, it ensures consistent processing. The policy is reviewed periodically to remain aligned with the organization’s mission, capacity, and governance practices.