Why would any non-profit organization need to have a gift acceptance policy? Don’t non-profits take anything they can get? Maybe they shouldn’t. There are many considerations to take into account when accepting a gift that may be considered unusual or unique.

If your organization periodically is presented with “different” types of donations, it may be a good idea to implement a gift acceptance policy. This can help when confronted with a potential donor who wants to unload something on your organization in order to get the tax deduction. In that situation, it may be beneficial to be able to say that you cannot accept the donation because it is not in accordance with your gift acceptance policy.

Here are some considerations when accepting a donation:

- What if there are environmental remediation liabilities associated with a gift of real estate or land? Where is the land located? Do you have any reporting obligations in that state?
- Maybe you think you can easily sell a donated vehicle for the cash, but why couldn’t the donor sell it? Maybe the repair costs are greater than the value of the car. How much time are you willing to put into fixing it and selling it?
- There could also be legal issues or issues relating to your organization’s reputation.
- Is there potential conflict of interest with the transaction?

Form 8282 is required to be filed with the IRS by the organization when it sells (or otherwise disposes of) charitable property (other than money and publicly traded securities) after receiving the item from the donor, when the claimed value is greater than $5,000. This is required if the organization sells the property within 3 years of receiving it. Form 8282 requires information on both the donee and donor, a description of the property, and dates of receipt and sale. The form must be filed within 125 days after the date of disposition.

In addition to gift acceptance policy, an organization may also want to consider obtaining legal advice prior to accepting an unusual gift.

Colette Kamps, CPA