Gift Acceptance Policies
All nonprofits should adopt certain corporate policies, including a gift acceptance policy. A gift acceptance policy describes the types of gifts that a nonprofit is, and is not, willing to accept – a nonprofit may not have use for an obsolete computer, a vehicle that does not start, or a gift with too many strings attached. Some potential gifts might even cause a nonprofit more harm than the gift is worth (e.g., the expensive maintenance of an old boat). Such a policy notifies a nonprofit’s members, board of directors, officers, employees, and volunteers of the gifts that the nonprofit will accept when potential donors inquire about making donations, thus preventing the nonprofit from receiving undesired gifts.
March 7, 2025
All nonprofits should adopt certain corporate policies, including a gift acceptance policy. A gift acceptance policy describes the types of gifts that a nonprofit is, and is not, willing to accept – a nonprofit may not have use for an obsolete computer, a vehicle that does not start,1 or a gift with too many strings attached. Some potential gifts might even cause a nonprofit more harm than the gift is worth (e.g., the expensive maintenance of an old boat). Such a policy notifies a nonprofit’s members, board of directors, officers, employees, and volunteers of the gifts that the nonprofit will accept when potential donors inquire about making donations, thus preventing the nonprofit from receiving undesired gifts.
Additionally, nonprofits may not want to accept gifts that run counter to their mission. For example, a nonprofit likely does not want to receive gifts from a potential donor whose actions run contrary to its mission or may be construed as socially or legally questionable.2 Rather than experiencing the awkwardness of plainly telling a potential donor that the nonprofit must reject the gift due to mission or conduct reasons, the nonprofit’s employees and volunteers may simply refer to language from the gift acceptance policy that precludes acceptance. Among other benefits, deferring to the policy also increases the odds of maintaining a positive relationship with a potential donor. A detailed policy also ensures that no one is forced to make an uninformed, spur of the moment judgment call when someone calls wishing to make a donation. A well-designed policy clearly outlines the gifts that a nonprofit will accept.
Moreover, accepting some gifts may lead to legal complications that a nonprofit does not want to experience, like property tax issues when a nonprofit receives real property. Similarly, a nonprofit may not be prepared to use, maintain, or dispose of certain gifts. A nonprofit located in rural Kansas likely does not have much interest in receiving a neglected yacht (assuming there is not a large lake nearby and a repair person on staff); a nonprofit located in the South Bronx may not want to receive an out-of-shape racehorse (assuming the donor does not offer to train and board the horse for free on his or her Hudson Valley farm). It is easier to decline these undesired gifts from a potential donor if the nonprofit’s gift acceptance policy explicitly bans them.
In addition to developing a gift acceptance policy to prevent a nonprofit from receiving undesired gifts, a nonprofit should also implement a policy to keep track of all gifts that it receives because noncash contributions must be disclosed annually in the IRS’s Form 990. Nonprofits required to file Form 990 must complete Schedule M, Noncash Contributions, of Form 990 if they answer yes to either lines 29 or 30 in Part IV of Form 990.3 A nonprofit should not accept certain noncash gifts if it does not want to publicly disclose them.4
If a nonprofit is uncertain whether it should accept a certain gift, the policy can state that prior to accepting certain noncash gifts, like real property, the nonprofit will conduct due diligence and/or consult with its legal counsel. Because a nonprofit should not serve as a tax advisor to potential donors, the policy should encourage donors to seek professional tax advice prior to making any gifts and explain that the nonprofit will not provide tax, legal, or financial advice to any donors. The nonprofit should review and periodically update its policy. To be transparent with potential donors, a nonprofit can include its policy on its website.
Furthermore, a gift acceptance policy should be tailored to meet a nonprofit’s specific needs. Because no two nonprofits are alike, no two policies will be identical. Even so, all policies should include the nonprofit’s mission,5 the purpose of the gift acceptance policy, and the types of gifts that it will, and will not, accept. As previously stated, nonprofits should only accept gifts that comply with their mission(s) and values and do not violate any ethical and legal standards. The policy should also include the person(s) within the organization who has the authority to accept a gift. Is it one individual? Is there a gift review committee that makes decisions?
In addition to drafting a gift acceptance policy, nonprofits must also consider donor intent when accepting gifts. A nonprofit must ensure that a donor’s gift is only used for the purpose(s) stated by the donor. If a nonprofit cannot comply with a donor’s wishes, it should not accept the gift. Forty-nine states6 and Washington, D.C. have adopted a version of the Uniform Prudent Management of Institutional Funds Act (“UPMIFA”), which provides a standard for the management and investment of charitable assets and includes guidelines for ensuring that donor restrictions are honored. Penalties for violating UPMIFA depend on the particular jurisdiction and context, and can include monetary penalties, civil or criminal charges, and loss of tax-exempt recognition. A nonprofit should not accept a gift if it is unable to comply with a donor’s restrictions on that gift.
Below is a gift acceptance policy template, which may be a helpful starting point. But as previously mentioned, every nonprofit has unique needs. As such, each policy will vary depending on a nonprofit’s needs.
Gift Acceptance Policy Template



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1 https://www.cartalk.com/car-donation/ (As of February 2025, National Public Radio (NPR) has received 123,000 vehicles through Car Talk’s Vehicle Donation Program, including some that do not operate).
2 See Nonprofit Quarterly for a discussion on whether a nonprofit should return money after a donor becomes involved in scandal (https://nonprofitquarterly.org/when-a-donor-becomes-tainted/).
3 Line 29 asks whether the organization received more than $25,000 in noncash contributions. Line 30 asks whether the organization received contributions of art, historical treasures, or other similar assets, or qualified conservation contributions.
4 Types of noncash gifts that must be disclosed include, but are not limited to, art, books, clothing, cars and other vehicles, boats, planes, securities, real estate, drugs and medical supplies, taxidermy, historical or archeological artifacts, and scientific specimens.
5 See, e.g., Wellesley College’s Gift Acceptance Policy at https://www.wellesley.edu/giving/development-resources/gift-acceptance-policy (“All gifts must be in furtherance of the College’s mission to provide an excellent liberal arts education for women who will make a difference in the world. This Policy is designed to ensure that all gifts to or for the use of the College are structured to benefit the College while ensuring fidelity to donor intent.”).
6 Pennsylvania has not adopted a version of the Uniform Prudent Management of Institutional Funds Act.
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