The Value of In-Kind Donations: How to Boost Acquisition

It’s crucial for nonprofits to foster strong supporter relationships to generate increased revenue for their missions. But sometimes, community members may not be able or willing to make a financial gift. 

In moments like these, you need to provide other avenues of engagement to keep supporters invested in your nonprofit’s cause. One such avenue is in-kind donations — let’s discuss why these gifts are important to nonprofits and how to secure them.

Why Are In-Kind Gifts Impactful?

In-kind gifts include any non-monetary gift made to a nonprofit or cause. They usually fall into two categories:

• Goods, referring to assets and materials
• Services, referring to time or expertise

These gifts are uniquely impactful for nonprofits and provide various benefits.

Cost savings. Supporters can donate goods and services your organization would otherwise have to pay for, allowing you to reallocate those funds to other mission-related initiatives.

Increased community support. Your nonprofit may have supporters who are passionate about your cause but can’t make a financial donation, such as younger individuals or those handling changing personal circumstances. In-kind gifts allow them to contribute to your mission without breaking the bank.

Stronger supporter relationships. By accepting non-monetary donations, your nonprofit provides additional avenues for supporters to engage with your mission, resulting in stronger and longer-lasting relationships.

Diverse resource acquisition. If your nonprofit has the bandwidth to handle multiple revenue streams, in-kind donations allow your organization to acquire more resources through diversification.

For some nonprofits, in-kind gifts are crucial to revenue generation. For example, consider Lost-N-Found Youth. This Atlanta-based organization runs a thrift store to increase revenue for its mission of providing services to LGBTQ+ youth experiencing homelessness. In-kind donations are an essential inventory-sourcing method for them, and proceeds from sold items support street outreach, a youth center and transitional housing for homeless LGBTQ+ youth.

How to Acquire More In-Kind Gifts

Much like acquiring financial donations, soliciting in-kind donations requires a thorough strategy. Here are a few tips to secure more in-kind gifts.

1. Create a Wish List

A crucial part of any donation-asking strategy is a clearly defined call to action. Some goods and services are more relevant to your nonprofit’s needs than others, so your supporters need to know exactly what type of in-kind gifts are most helpful and impactful.

Create a list of specific items and services that could benefit your nonprofit. Then, either add it directly to your nonprofit’s general donation page or create a dedicated in-kind gift page. For example, check out Atlanta Mission’s page, which lists items its beneficiaries urgently need. You may also wish to outline your gift acceptance policy regarding goods and services, such as the acceptable condition of items or the minimum number of service hours required.

2. Actively Promote In-Kind Gifts

Your nonprofit undoubtedly has an established marketing strategy for donations — broaden that strategy to include in-kind gifts. Consider the channels you currently use to solicit gifts (such as email, social media, digital ads and direct mail) and draft messages about in-kind donations that align with each channel’s format.

Provide specific framing in appeals so donors understand precisely how in-kind gifts will be used. Start by outlining the reason for asking for these items, whether you need prizes for an upcoming fundraising auction or web design services to revamp your outdated site. Then, discuss how supporters can make these in-kind gifts, such as where they should drop off items or sign up to provide a service.

3. Host In-Kind Donation Drives

An in-kind donation drive is an event where your nonprofit specifically appeals to its community members for certain goods or services. You see these commonly with nonprofits that work with people experiencing homelessness or food insecurity, as they may host canned food or clothing drives.

If your organization is in need of many specific supplies, this event is an opportunity to significantly boost donations. Design and send out event marketing materials encouraging supporters to donate the goods you need. A specific, concentrated push for in-kind gifts creates a sense of urgency among community members, especially if your donation drive has an end date. This results in more in-kind donations for your nonprofit’s mission.

Stewarding In-Kind Donors

Although in-kind donors aren’t making a financial contribution to your nonprofit, they’re still contributing to your mission, which deserves your gratitude and appreciation. Steward in-kind donors by sending them thank-you messages, asking them for feedback on your in-kind donation processes and encouraging them to get involved with your organization in other ways.

The preceding post was provided by an individual unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of NonProfit PRO.