How to Create a Nonprofit Gift Acceptance Policy

A thoughtful gift acceptance policy does more than tell your team which donations to say yes to. It protects your nonprofit’s mission, reduces legal and financial risk, gives staff clear guidance, and creates a consistent donor experience.

Without a policy, nonprofits often make donation decisions case by case under pressure. That can lead to problems like accepting hard-to-liquidate assets, taking on gifts with restrictions your team cannot realistically fulfill, or spending staff time managing donations that cost more than they are worth.

A well-written policy helps your organization avoid those issues before they become expensive mistakes.

What is a nonprofit gift acceptance policy?

A gift acceptance policy is a board-approved document that outlines the types of contributions your nonprofit will accept, review, refuse, and administer. It usually covers:

• Cash and standard online donations
• Checks, ACH, and credit card gifts
• Securities and mutual funds
• Real estate
• Vehicles and other personal property
• Cryptocurrency
• Planned gifts and bequests
• Restricted gifts
• Donor-advised fund grants
• Anonymous donations
• Gifts that may create legal, ethical, or reputational concerns

In short, it answers a practical question: Under what conditions should we accept a gift?

For many organizations, especially growing nonprofits, this policy becomes essential as soon as fundraising expands beyond simple cash donations.

Why your nonprofit needs a gift acceptance policy

Many nonprofits do not think about gift acceptance until a complicated donation appears. A donor offers land. Someone wants to contribute shares of stock. A family proposes a scholarship fund with heavy restrictions. A business wants naming rights in exchange for a gift.

At that point, your team needs a framework.

A policy protects your mission

Every donation should support your organization’s charitable purpose. If a gift comes with conditions that distort programs, create inequity, or divert resources, it may not be worth accepting.

A strong policy helps leadership ask:

• Does this gift align with our mission and values?
• Can we realistically administer it?
• Will it place an unreasonable burden on staff or finances?
• Could it harm our reputation or stakeholder trust?

A policy reduces legal and financial risk

Some gifts come with hidden liabilities. Real estate may have environmental issues. Closely held stock may be difficult to value or sell. Restricted gifts can create long-term obligations. Even simple in-kind donations may have tax acknowledgment implications.

The IRS has clear rules around substantiation and charitable contributions, especially for non-cash gifts. Your nonprofit should understand what it can and cannot say in donor receipts. The IRS guidance on charitable contributions is a useful reference point.

A policy supports staff and board decision-making

When guidelines are documented, staff do not have to improvise. Development, finance, and executive leadership can follow the same process, escalate unusual gifts appropriately, and avoid inconsistent decisions.

This is especially important when a major donor is involved. A clear policy makes it easier to say, “We appreciate this generous offer, and our board-approved policy requires review before acceptance.”

A policy improves donor communication

Gift acceptance policies are not just defensive tools. They also help set expectations for donors.

When your team can clearly explain:

• Which gift types you accept
• How complex gifts are reviewed
• What documentation is required
• Whether the nonprofit will sell donated assets
• How restricted gifts are evaluated

...donors are more likely to have a smooth and positive experience.

Common donation issues a gift acceptance policy can prevent

A practical policy should help your nonprofit prevent recurring problems such as:

Accepting gifts with restrictions you cannot fulfill

Example: A donor offers $100,000, but only if it funds a program your nonprofit does not currently run and cannot sustain.

Without policy guidance, staff may feel pressure to accept the money. Later, the organization struggles to honor the restriction or redirects funds improperly.

Taking on assets with more cost than value

Example: A donor offers a parcel of undeveloped land. The land requires appraisal, legal review, insurance, environmental due diligence, and months to sell.

The gift sounds valuable, but the carrying costs and administrative burden may outweigh the benefit.

Creating inconsistent donor treatment

If one donor’s restriction is accepted and another donor’s similar request is rejected, your nonprofit may appear arbitrary or unfair. A written policy establishes consistent criteria.

Making improper tax-related statements

Nonprofits should acknowledge donations, but they generally should not assign value to non-cash contributions in donor receipts. That is the donor’s responsibility in many cases. A policy can define how acknowledgments are handled and who approves them.

Accepting gifts that create reputational risk

Sometimes the issue is not the asset itself but the source of the donation or conditions attached to it. A policy should give your organization room to decline gifts that could undermine public trust.

Core elements of an effective gift acceptance policy

A useful policy should be specific enough to guide decisions but practical enough that staff will actually use it.

Here are the key sections to include.

1. Purpose and scope

Start with a short statement explaining why the policy exists. For example:

• To protect the mission and interests of the organization
• To provide guidance for staff, board, and donors
• To ensure legal, ethical, and financially responsible gift acceptance practices

Define who the policy applies to, such as fundraising staff, finance staff, executive leadership, and the board.

2. General principles for accepting gifts

This section sets the overall standard. You may state that gifts will be accepted only if they:

• Support the nonprofit’s mission
• Are consistent with organizational values
• Do not create excessive administrative burden
• Do not expose the organization to unacceptable legal, financial, or reputational risk
• Can be administered in compliance with donor intent and applicable law

This high-level language helps when evaluating unusual gifts not listed elsewhere in the policy.

3. Types of gifts accepted outright

List the gift categories your nonprofit can routinely accept without special review, such as:

• Cash n- Checks
• Credit card and online donations
• ACH and wire transfers
• Publicly traded securities
• Standard donor-advised fund grants
• Typical matching gifts

You can also note any operational requirements, like gifts needing to be payable directly to the organization or transferred through approved accounts.

4. Gifts requiring review or approval

This is one of the most important sections.

Identify gifts that require deeper review before acceptance, such as:

• Real estate
• Closely held business interests
• Restricted gifts above a certain dollar amount
• Endowment gifts
• Tangible personal property
• Vehicles, boats, or aircraft
• Gifts involving naming opportunities
• Cryptocurrency
• Bequests with unusual conditions
• Gifts from sources that may present reputational concerns

Then specify who reviews them. That may include the executive director, finance lead, legal counsel, development director, or a board committee.

5. Gifts your nonprofit will generally decline

This section gives your team confidence to say no.

Examples may include gifts that:

• Are too costly to administer
• Carry restrictions inconsistent with mission or strategy
• Require the nonprofit to hold illiquid assets indefinitely
• Expose the organization to environmental or legal liability
• Create conflicts of interest
• Could damage the nonprofit’s reputation or public trust
• Are not readily marketable and lack a clear benefit

This section should not be unnecessarily rigid, but it should provide strong guardrails.

6. Rules for restricted gifts

Restricted giving is common and often beneficial, but only when restrictions are manageable.

Your policy should explain:

• What types of restrictions are acceptable
• Who can approve restricted gifts
• Whether minimum gift amounts apply for named funds or programs
• What happens if a restriction becomes impractical or obsolete
• Whether the nonprofit reserves the right to seek modification of restrictions when necessary

Concrete example: You might accept restricted gifts for existing programs but decline gifts that require launching entirely new services without a board-approved plan.

7. Non-cash gift procedures

Non-cash donations require more detail because they involve valuation, storage, sale, use, and tax issues.

Your policy may address:

• Whether the nonprofit will use or sell donated property
• When appraisals are required and who obtains them
• Whether environmental review is required for real estate
• Whether legal counsel must review transfer documents
• Whether acceptance depends on marketability or carrying costs

For many organizations, the safest approach is to state that non-cash gifts are reviewed case by case.

Resources from organizations like Candid can help nonprofits benchmark common policy practices.

8. Gift acknowledgment and receipting

Your policy should include a clear process for receipts and acknowledgments.

Cover points like:

• Who issues gift receipts
• What information is included
• How quid pro quo contributions are handled
• How non-cash gifts are acknowledged without assigning value
• How quickly acknowledgments are sent

This is where strong systems matter. A donor platform with organized records, acknowledgment workflows, and clean reporting can reduce errors and improve consistency. If your team is looking to streamline gift tracking and donor communication, explore GiveRise features.

9. Authority levels and approval workflow

Be explicit about who can accept what.

For example:

• Development staff may accept routine cash gifts
• The executive director may approve restricted gifts under a defined threshold
• The finance committee reviews real estate and business interests
• The board approves endowments, naming rights, and unusually complex gifts

This prevents confusion and unauthorized commitments.

10. Donor responsibility and professional advice disclaimer

Include language making clear that the nonprofit does not provide legal, tax, or financial advice. Encourage donors to consult their own advisors.

This matters especially for appreciated assets, planned gifts, and complex charitable tax planning.

How to build your policy step by step

If your nonprofit does not yet have a gift acceptance policy, start simple. You can strengthen it over time.

Step 1: Review the gifts you already receive

Look at the last 12 to 24 months of donations and ask:

• Which gift types are routine?
• Have we received any unusual or difficult gifts?
• Where have staff needed ad hoc judgment calls?
• What donation scenarios make us nervous?

This helps you build a policy based on real risk, not just theory.

Step 2: Involve the right stakeholders

Gift acceptance affects more than fundraising.

Bring in:

• Development leadership
• Finance staff
• Executive leadership
• Board members
• Legal counsel when appropriate

The strongest policies are operationally realistic, not just legally sound.

Step 3: Define your organization’s risk tolerance

Every nonprofit has a different capacity.

A small nonprofit may decide not to accept real estate, vehicles, or cryptocurrency at all. A large institution may have the expertise to manage them.

Your policy should reflect your actual staffing, systems, and financial controls.

Step 4: Draft clear acceptance categories

A practical framework is:

1. Gifts routinely accepted
2. Gifts accepted after review
3. Gifts generally declined

That structure is easy for staff to remember and apply.

Step 5: Establish a review process for exceptions

Not every gift will fit neatly into a category. Your policy should allow exceptions with proper approval.

For instance, you may generally decline real estate but allow review if:

• The property is debt-free
• There are no known environmental concerns
• A sale appears likely within a reasonable period
• Due diligence costs are covered or justified

Step 6: Get board approval

Because this policy affects governance, risk, and donor relationships, it should usually be approved by the board or an authorized board committee.

Board approval adds legitimacy and makes staff enforcement much easier.

Step 7: Train staff and document procedures

A policy no one uses will not prevent problems.

Create simple internal guidance for:

• Escalating unusual gifts
• Logging restrictions accurately in your CRM
• Issuing proper acknowledgments
• Coordinating development and finance review
• Documenting approval decisions

This is where technology can help. A modern fundraising and donor management system can standardize recordkeeping, reduce manual errors, and make policy compliance easier across teams. If you are comparing tools, GiveRise offers flexible plans for nonprofits of different sizes; see pricing.

Step 8: Review the policy annually

Gift types evolve. So do regulations, payment methods, and donor expectations.

Review your policy at least once a year or when:

• Your nonprofit launches a major gifts or planned giving program
• You begin accepting new asset types
• You encounter a donation issue the policy did not address
• Leadership or legal counsel recommends updates

Sample decision questions for complex gifts

When a non-routine gift is offered, your team can use a short checklist like this:

• Does this gift align with our mission and strategic priorities?
• Can we use or liquidate the asset efficiently?
• What direct and indirect costs will the organization incur?
• Are there legal, environmental, tax, or regulatory concerns?
• Are the donor’s restrictions clear, lawful, and feasible?
• Who must approve acceptance?
• How will the gift be recorded, acknowledged, and reported?
• Could accepting this gift create reputational concerns?

These questions can prevent rushed decisions based solely on the size of the donation.

Mistakes to avoid when writing a gift acceptance policy

Even well-intentioned nonprofits can create policies that are difficult to use.

Making the policy too vague

If your policy only says “the nonprofit may accept gifts at its discretion,” it offers little practical guidance.

Making the policy too complex

If every gift requires board review, staff will work around the policy or delay donor responses unnecessarily.

Ignoring operational follow-through

A good policy must connect to actual workflows, CRM coding, acknowledgment templates, and finance procedures.

Overpromising to donors before review

Train fundraisers not to commit to unusual gift terms until the appropriate internal review is complete.

Forgetting about restricted gift administration

Accepting a restricted gift is only the start. Your nonprofit must also track, spend, and report on those funds correctly.

Conclusion

A nonprofit gift acceptance policy is one of the most practical governance tools your organization can adopt. It helps protect your mission, gives staff a clear framework, supports donor trust, and prevents costly donation issues before they happen.

The best policy is not the longest one. It is the one your team can understand, apply consistently, and revisit as your fundraising grows.

If your nonprofit is building stronger systems for gift tracking, donor records, acknowledgments, and fundraising operations, GiveRise can help. Explore GiveRise and see how our platform can simplify donation management, improve team efficiency, and support confident growth.