3 Best Practices For Soliciting In-Kind Donations
Winter is approaching, and your nonprofit urgently needs clothing and personal care items to support your beneficiaries through the colder months. Securing these donations could make a tremendous difference for the community you serve, but you’re unsure how to request them or make it easy for donors to contribute.
This scenario is common for organizations that rely on in-kind donations as part of their fundraising strategies and daily operations. For example, food banks and pantries depend on donations of non-perishable foods, while nonprofit thrift stores source inventory from community donations.
Yet, in-kind gifts can strain resources if you lack a clear plan for soliciting and using them. In this guide, we’ll explore best practices for requesting in-kind gifts, from setting clear expectations to creating a smooth donor experience.
Align Donation Requests With Organizational Needs
Your nonprofit should only accept items or services that benefit your organization’s operations. Without a strategy to guide these contributions, a well-intended donation can quickly become a logistical challenge.
Follow these steps to determine and communicate your organization’s needs for in-kind donations:
Assess and communicate needs. Identify donations that align with your objectives and fill in gaps in current resources. These might be clothing, food, technology, or auction items for an upcoming fundraiser. Remember, in-kind gifts aren’t limited to physical items — services such as marketing assistance or event space rentals are also valuable.
Develop a wishlist. Post a curated wishlist on your website and update it periodically to reflect evolving needs. Listing items by urgency or aligning them with specific program areas shows donors the greatest impact points.
Encourage open communication with donors. Let donors reach out with questions or suggestions about what they’d like to contribute for ongoing needs or specific nonprofit events. This guides donations toward high-priority items, reducing the risk of receiving items that may not be useful.
Once you’ve chosen and communicated your in-kind donation needs, conduct periodic assessments to reprioritize your organization’s needs. Based on these assessments, adjust your wishlist, ensuring donors know what to contribute for the greatest impact.
Clearly Set and Communicate Quality Control Standards
When requesting in-kind donations, quality control standards ensure all contributions are usable. In particular, communicating standards upfront prevents unsuitable items from reaching your facility.
Define the condition items need to be in. For example, a thrift store, homeless shelter, or afterschool program may request “new” or “gently used” items. Meanwhile, a food pantry might set standards like “unopened,” “within the expiration date,” and “non-perishable.”
Once you determine quality standards, post these requirements on an informational page, underneath items in your wishlist, or in an FAQ section on your nonprofit’s website. If relevant, link to legal and safety regulations for items like food or medical supplies to safeguard the well-being of the people you serve.
As donations are made, your inventory software may help ensure donations meet quality standards. Your team can use it to track item condition and flag items for approval before they reach storage or the sales floor.
Create A Positive Donation Experience
When someone donates in-kind gifts to your organization, ensure they have a seamless, positive experience. This encourages them to donate again later, helping you retain donors. Let’s explore a few elements that will enhance your donation process.
Pickup and Dropoff Arrangements
Make it easy for donors to give. Depending on what types of donations you’re collecting, you might offer these pickup or dropoff options:
Place a collection bin at your nonprofit’s office or facility.
Partner with other businesses and request they put bins in their storefronts.
Have a designated dropoff zone at your facility where staff members or volunteers greet donors and accept donations.
Offer a pickup option where your team travels to people nearby to pick up in-kind donations for a small fee.
Whether you offer pickup options or coordinate dropoffs, provide clear guidelines on your website about item size, pickup locations, or specific conditions, and communicate any associated fees or limitations. If needed, your donation software may enable automated pickup and dropoff scheduling.
Donation Receipts
Placing a monetary value on in-kind donations can be challenging, especially for one-of-a-kind or used items. Luckily, donors must determine the monetary value of the goods they donate.
For in-kind donations, provide a donation receipt that includes the donor’s name, description of the items, donation date, and your nonprofit’s tax identification number. For clarity, consider including a note that it is the donor’s responsibility to determine the fair market value of their items for tax purposes.
Check if your fundraising software or point of sale (POS) system will automatically generate donation receipts to simplify this process.
Logistics Management
In-kind donations have more logistical challenges than standard financial donations. When your nonprofit is prepared to handle bulk items, storage, and seasonal variations, you can better serve your mission and provide a smooth donor experience.
Here are a few tips for optimizing logistics for in-kind donations:
Set limits for bulk donations. Bulk donations can quickly fill up storage space, so set clear guidelines. Additionally, use inventory management software to track space availability and keep your storage space manageable so you don’t have to turn donors away.
Streamline sorting and cataloging. Establish sorting protocols and use real-time tracking tools to organize items by category, condition, or priority level. Inventory software automates this process and minimizes errors, so your team can focus on soliciting donations.
Prepare for seasonal or cyclical needs. Nonprofits often see a spike in donations around key times like the holidays or spring cleaning season. Planning for peak donation periods ensures your organization can handle the influx. Your inventory software can help by letting you flag seasonal or time-sensitive items and mark down items during slower periods (if your nonprofit sells items).
While donors don’t always see the logistical side of donating, it still impacts their experience. Generally, clear processes make your nonprofit look more professional, which builds trust.
Specifically, precise in-kind donation management logistics mean that your nonprofit always knows what items it needs, so items solicited from community members never go to waste. Plus, effective inventory management means that unused items can still be held onto, so you won’t need to ask community members for the same items constantly. This positions your nonprofit as a more effective steward of donations.
Pricing Items For Resale
If your nonprofit resells donated items, like Goodwill, create a pricing strategy that aligns with your mission while ensuring affordability for customers so donors feel good about their contributions. For example, ThriftCart’s pricing guide explains that thrift stores should price items based on:
Condition and quality: High-quality items in good condition are worth more than those in poor condition.
Brand and rarity: Items that are rare or created by popular brands may be worth more than similar items.
Seasonal demand: Demand for certain items will fluctuate based on the season. For instance, people are less likely to buy mittens in the summer than in winter.
Competitive pricing in other stores: Research retailers and other nearby thrift stores to determine your prices to stay competitive.
Reasonable profit margins: Item storage and selling incur costs, such as inventory space and staff time. Set your prices to negate these costs.
For instance, in winter, you might price a North Face jacket in excellent condition at $55, considering its brand value, winter season demand, and prices of similar jackets in nearby resale shops. If it hasn’t sold by spring, mark it down, as people are less likely to buy cold-weather clothes.
Donor Appreciation
Make donors feel good about donating by thanking them after the fact! A simple thank-you can kickstart a lasting relationship. eCardWidget recommends crafting thank-you emails that include:
Eye-catching subject lines to encourage donors to open the message. Try including their name to capture attention as they scroll through their inbox.
Gift details to clarify that your nonprofit values their specific contribution.
Donation impact to explain how their donation helps, such as “The school supplies you provided will equip three middle school students for a successful school year.”
Powerful visuals, such as a photo of a happy student with their new school supplies.
A call to action to show you’re looking forward to their continued involvement, such as by asking them to sign up for your newsletter or follow your social media accounts.
Thanking your donors lays the foundation for successful relationships, so don’t let supporters’ in-kind gifts go unnoticed.
In-kind donations can attract new donors to your cause and provide loyal donors another avenue for support by providing non-financial ways to give. It’s up to your team to request items that will push your mission forward and communicate your expectations for the donation process, including item quality and condition. Determine what gaps your donors can fill, share those opportunities, and remember to thank them for their generosity!