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Nonprofit Talk - When are "free" in-kind donations worth it?

Nonprofit Talk - When are "free" in-kind donations worth it?
Posted By: Jon C. on July 07, 2008


As a nonprofit ED, manager, or staffer, you probably run into this situation frequently: a donor has offered equipment or supplies for free, or at a minimal cost.

The problem: will the "donation" end up costing more in time, transaction cost, or personnel resources than it's really worth?

Many of us have fallen into this trap... accepting a good-faith donation of equipment or furnishings only to realize that you'll have to pick up and store the materials at your expense, or that the materials are obsolete, damaged, or otherwise unusable.

Before accepting any donation, be sure to make sure that you've covered the following points:

1. Is there a real, organizational need for the donated materials?

There's a tendency to get excited when someone offers us anything free. Regardless of whether we need it or not.

Do you really need another office desk? Does your organization have someone who needs a computer, or will it simply sit in a corner or empty office to become tomorrow's headache? Think carefully about whether the donation will make a serious impact before investing time into receiving it.

2. Are the donated materials in good condition?

Your organization will probably be approached about receiving materials that are gently used, as well as materials that have outlived their usefulness. Learn the difference between the two.



It may be more sensible to invest in a new product.

Obsolete computer equipment is the most common in-kind donation headache - there are countless nonprofit offices full of dot-matrix printers, DOS computers, monochrome PC monitors, run-down copy machines, and other such dinosaurs. Make sure you have a complete inventory of any equipment you'll be receiving, and ensure it is compatible with your existing technology.

3. What are the costs associated with the donation?

In most cases, your organization will be responsible for transporting and storing the materials. Will you need to procure a truck or van? Is there adequate storage, or will this create a new expense? How much will your organization need to invest in repair?

You'll be surprised at how often the cost of transporting large-item donations exceeds the cost of purchasing the item new.

4. One man's trash isn't always another man's treasure.

Beware of inheriting another organization's headache... don't be afraid to decline a donation that isn't in your organization's long-term interest. Yes, it may be a good faith donation, but be prepared to explain politely why your organization has little use for that crate of 5" floppy disks or a collection of ancient electric typewriters.

If the donation is not something that you would already have on your supply list if your budget allowed, think twice before accepting it.

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