Non Profit Gift Acceptance Policy Template (Free Word)

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At a glance

What it is: A Nonprofit Gift Acceptance Policy is a board-approved internal document that defines which types of donations an organization will accept, how each type is evaluated, who has authority to approve non-standard gifts, and how accepted gifts are processed and acknowledged. This free Word download gives you a ready-to-edit policy you can tailor to your mission and present to your board for adoption, then export as PDF for staff and donor reference.
When you need it: Use it when your organization begins receiving gifts beyond straightforward cash donations — such as publicly traded securities, real estate, vehicles, or in-kind goods — or when a donor, auditor, or grant funder asks to see a documented gift acceptance process. Boards of any nonprofit seeking IRS Form 990 compliance or preparing for a capital campaign should adopt one before solicitations begin.
What's inside: Policy purpose and scope, definitions of accepted and prohibited gift types, due diligence and review procedures, approval authority matrix, valuation and appraisal requirements, gift acknowledgment and receipting standards, donor restriction handling, and conflict-of-interest safeguards.

What is a Nonprofit Gift Acceptance Policy?

A Nonprofit Gift Acceptance Policy is a board-approved governing document that defines which types of charitable donations an organization will accept, how each gift category is evaluated before acceptance, who holds authority to approve or decline non-standard gifts, and how accepted donations are processed, valued, and acknowledged. It covers the full spectrum of gift types — from straightforward cash and credit card donations to complex non-cash contributions such as real estate, closely held business interests, publicly traded securities, planned gifts, and digital assets. By establishing clear rules in advance, the policy protects the organization from gifts that carry hidden liabilities, ensures donors receive IRS-compliant acknowledgments, and demonstrates the governance discipline that major donors and institutional funders expect to see.

Why You Need This Document

Without a written gift acceptance policy, your organization is one unexpected donation away from a serious problem. A well-meaning donor could offer a piece of encumbered real estate, a life insurance policy, or a collection of artwork — and your staff would have no documented authority to evaluate, negotiate, or decline it. Accepting the wrong gift without due diligence can saddle the organization with environmental liability, carrying costs, or IRS appraisal penalties that far exceed the gift's value. The IRS Form 990 asks directly whether your organization has a gift acceptance policy; answering "no" signals a governance gap to every major donor, foundation program officer, and watchdog evaluator who reviews your filing. Beyond compliance, a clear policy speeds up gift processing by eliminating ad hoc decision-making, reduces disputes with donors over how restricted funds are used, and protects board members from personal liability exposure tied to self-dealing or undisclosed conflicts. This template gives you a structured, board-ready policy you can adapt in hours rather than drafting from scratch — so your team can focus on donor relationships, not governance emergencies.

Which variant fits your situation?

If your situation is…	Use this template
Small nonprofit receiving only cash and check donations	Simplified Gift Acceptance Policy
Organization actively soliciting planned or deferred gifts	Planned Giving Policy
Nonprofit receiving donated goods and services regularly	In-Kind Gift Acceptance Policy
Community foundation managing donor-advised funds	Donor-Advised Fund Gift Acceptance Policy
University or hospital system with major gifts program	Institutional Gift Acceptance Policy
Nonprofit conducting a formal capital campaign	Capital Campaign Gift Acceptance and Naming Policy
Organization receiving cryptocurrency or digital asset donations	Digital Asset Gift Acceptance Policy

Common mistakes to avoid

❌ Accepting restricted gifts without a written gift agreement

Why it matters: Verbal understandings about how a gift must be used become contested years later when programs change or the donor's family follows up. The organization may face legal action or reputational damage if it cannot demonstrate the restriction was honored.

Fix: Require a signed gift agreement for any donation with donor-imposed conditions before depositing the funds. Use a standard one-page gift agreement template and keep executed copies indefinitely.

❌ No explicit list of prohibited gift types

Why it matters: Without a written prohibition, staff have no authority to decline a problematic donation — a contaminated property, an encumbered asset, or a gift from a source that conflicts with the organization's mission. One problematic acceptance can create liability that exceeds the gift's value many times over.

Fix: Add a dedicated prohibited gifts section listing at minimum: encumbered real property, environmentally liable assets, conditioned gifts that restrict personnel decisions, and gifts from donors whose activities conflict with the mission.

❌ Acknowledging non-cash gifts at donor-stated value

Why it matters: Acknowledging a non-cash gift at a value the donor provides — without independent appraisal — can expose both the donor and the organization to IRS penalties if the claimed value is later disputed during an audit.

Fix: Require a qualified independent appraisal for all non-cash gifts above the IRS threshold (currently $5,000 for most property). State in the acknowledgment only the description of the property, not its value.

❌ Letting the policy go unreviewed for more than three years

Why it matters: IRS thresholds for appraisals and acknowledgments change. New gift types such as cryptocurrency and donor-advised funds have emerged. An outdated policy provides false confidence and may not cover situations that arise in practice.

Fix: Assign the annual review to a specific role — typically the CFO or development director — and calendar it alongside the Form 990 preparation cycle so it does not get deferred.

The 10 key sections, explained

Purpose and scope

Accepted gift types

Gifts requiring review and approval

Prohibited gifts

Donor restrictions and gift agreements

Valuation and appraisal requirements

Gift acknowledgment and receipting

Approval authority matrix

Conflict of interest safeguards

Policy review and amendment

How to fill it out

1
Insert your organization's legal name and tax ID
Replace all [ORGANIZATION NAME] placeholders with your nonprofit's full registered legal name as it appears on your IRS determination letter. Add your EIN in the document header or footer.
💡 Use the exact legal name — not a program name or DBA — so the policy is unambiguously linked to your tax-exempt entity.
2
Define your accepted and review-required gift categories
Walk through your organization's actual gift history and anticipated donation types. Mark each type as 'accepted without review,' 'requires committee review,' or 'prohibited.' Adjust the threshold dollar amounts to match your operational capacity.
💡 If your organization has never received real estate or cryptocurrency, it is still best practice to address them explicitly — unanticipated gifts arrive without warning.
3
Set your approval authority thresholds
Fill in the dollar amounts and gift categories that trigger each level of approval — development staff, executive director, Gift Review Committee, and full board. Align these thresholds with your existing financial authorization policy.
💡 Threshold amounts that haven't been revisited in more than three years are likely outdated — adjust for inflation and your current gift volume.
4
Specify valuation and appraisal rules
For each non-cash gift type in the review-required list, state how it will be valued and whether a qualified appraisal is required. Confirm the IRS dollar thresholds for appraisal requirements are current (check IRS Publication 561 for the latest figures).
💡 State explicitly that appraisal costs are the donor's responsibility — this is the IRS standard and prevents awkward conversations later.
5
Draft acknowledgment letter standards
Enter your standard acknowledgment timing target (e.g., within 5 business days), the minimum gift amount requiring written acknowledgment, and the required statutory language for cash gifts over $250.
💡 Pull a sample acknowledgment letter from your current system and verify it matches the language requirements in this section before finalizing the policy.
6
Name the Gift Review Committee members by role
Identify the committee by role title rather than individual name so the policy does not require amendment every time personnel changes. A typical committee includes the executive director, CFO or finance manager, and at least one board member.
💡 Specify a quorum requirement (e.g., two of three members) so the committee can act even when one member is unavailable.
7
Cross-reference your conflict-of-interest policy
Insert the adoption date of your existing conflict-of-interest policy in the safeguards section. If you do not have one, note that it should be adopted concurrently — many auditors and funders expect both documents to exist together.
💡 Some grant funders require you to attach both policies to grant applications — keeping both current and cross-referenced saves time during due diligence.
8
Present to the board for adoption and record the vote
Place the policy on the next board meeting agenda as an action item. The resolution adopting the policy should be recorded in the board minutes, with the adopted date entered in the policy's review-and-amendment section.
💡 Date-stamp the policy header with the board adoption date, not the date the document was drafted — the adoption date is what matters for IRS and audit purposes.

Frequently asked questions

What is a nonprofit gift acceptance policy?

A nonprofit gift acceptance policy is a board-approved document that defines which types of donations an organization will accept, how each type is evaluated and processed, who has authority to approve non-standard gifts, and how donors are acknowledged. It protects the organization from gifts that carry hidden liabilities, ensures consistent handling of donations, and demonstrates sound governance to funders and auditors.

Is a gift acceptance policy legally required for nonprofits?

No federal law requires a nonprofit to have a gift acceptance policy, but the IRS Form 990 asks whether the organization has one — and answering "no" signals a governance gap to potential donors, grantmakers, and watchdog evaluators. Most accreditation bodies, community foundations, and major institutional funders expect one to be in place before awarding grants or making significant contributions.

What gift types should be covered in the policy?

At minimum: cash and checks, wire transfers, publicly traded securities, real estate, closely held business interests, tangible personal property (vehicles, art, equipment), in-kind gifts, life insurance, planned gifts such as bequests and charitable remainder trusts, and cryptocurrency or digital assets. The policy should assign each type to one of three categories: accepted without review, requires committee approval, or prohibited.

Who should approve the gift acceptance policy?

The full board of directors must adopt the policy by a recorded vote, and the adoption date should appear on the document. Day-to-day administration is typically delegated to the executive director or development director, with a Gift Review Committee handling non-standard gifts. Having only staff approve the policy — without board action — undermines its authority and does not satisfy governance best practices.

How does the policy protect donors?

A well-drafted policy ensures donors receive proper written acknowledgments that meet IRS requirements — including the required statutory language for gifts of $250 or more and quid pro quo disclosure when applicable. It also requires qualified appraisals for non-cash gifts, protecting donors from IRS challenges to their deduction claims. Donors increasingly ask to see a gift acceptance policy before making a major contribution to confirm their gift will be stewarded responsibly.

What should happen when a donor wants to place restrictions on a gift?

Any gift with donor-imposed conditions should require a written gift agreement signed by an authorized officer before the organization accepts the funds. The agreement should document the restriction precisely, specify what happens if the restriction becomes impossible to fulfill, and be retained permanently. Verbal restrictions are unenforceable and create disputes — the policy should prohibit accepting restricted gifts without a written agreement.

How often should the gift acceptance policy be reviewed?

A full board review every two to three years is considered best practice, with an interim review triggered by significant changes in tax law, organizational programming, or emerging gift types such as digital assets. Many organizations align the review cycle with Form 990 preparation so the policy and the 990 filing reflect the same current practices.

What is a Gift Review Committee and who should be on it?

A Gift Review Committee is a designated group responsible for evaluating non-standard or complex gift offers before acceptance — typically real estate, closely held stock, cryptocurrency, and planned gifts. Membership should include the executive director, the CFO or finance manager, and at least one board member. Identifying members by role rather than name avoids the need to amend the policy every time personnel changes.

Does the policy need to address cryptocurrency donations?

Yes — and many existing policies do not, which creates an operational gap. The IRS treats cryptocurrency as property rather than cash, requiring qualified appraisal for donations over $5,000 and Form 8283 filing. Most nonprofits that accept digital assets adopt a liquidation-on-receipt rule to eliminate market-value volatility. The policy should address acceptance criteria, the liquidation timeline, and the acknowledgment language for digital asset gifts specifically.

How this compares to alternatives

vs Conflict of Interest Policy

A conflict of interest policy governs how board members and staff disclose and manage personal interests that could influence organizational decisions. A gift acceptance policy governs the intake, evaluation, and processing of donated assets. The two documents work together — most gift acceptance policies cross-reference the conflict of interest policy for situations where a gift involves a related party — but they address different governance obligations.

vs Donation Receipt Template

A donation receipt is a transactional document sent to each individual donor to acknowledge a specific gift and satisfy IRS written-acknowledgment requirements. A gift acceptance policy is a governing document that sets the rules for which gifts are accepted and how. The policy drives what language and procedures the receipt must follow; the receipt executes against those standards for each transaction.

vs Nonprofit Bylaws

Bylaws establish the organization's fundamental governance structure — board composition, officer duties, and meeting procedures. A gift acceptance policy is a subsidiary policy that the board adopts under its authority established by the bylaws. Bylaws rarely contain gift acceptance detail; that belongs in a dedicated standalone policy that can be updated without amending the bylaws.

vs Fundraising Plan

A fundraising plan is a strategic document that sets revenue goals, identifies donor segments, and maps the tactics and timeline for soliciting contributions. A gift acceptance policy is a compliance and governance document that determines what happens after a donation is offered. The fundraising plan drives gift volume; the gift acceptance policy governs how those gifts are received and processed.

Industry-specific considerations

Higher Education

Universities manage planned gifts, real estate donations, and named endowment funds requiring gift agreements with minimum funding thresholds and naming rights provisions.

Healthcare and Hospitals

Hospital foundations must address gifts of medical equipment and research-restricted funds while ensuring donor acknowledgments comply with HIPAA and IRS rules simultaneously.

Arts and Cultural Organizations

Museums and performing-arts nonprofits frequently receive donations of artwork, instruments, and collections requiring IRS-qualified appraisals and deaccessioning policies for items not retained.

Community Foundations

Community foundations accept donor-advised fund contributions across a wide range of asset types and must maintain policies that address gift acceptance for all component funds under their administration.

Template vs pro — what fits your needs?

Path	Best for	Cost	Time
Use the template	Small to mid-size nonprofits adopting or refreshing a standard gift acceptance policy	Free	2–4 hours to complete, plus board meeting time for adoption
Template + professional review	Organizations actively receiving planned gifts, real estate, or digital assets, or preparing for a capital campaign	$300–$800 for a nonprofit attorney or CPA review	1–2 weeks
Custom drafted	Large foundations, university development offices, or hospitals managing complex multi-asset gift portfolios with endowment provisions	$1,500–$5,000 for custom legal drafting	3–6 weeks

Glossary

Gift Acceptance Policy: A board-approved document specifying which types of donations an organization will accept, how they are evaluated, and who has authority to approve or decline them.
Unrestricted Gift: A donation with no conditions attached, allowing the organization to apply the funds wherever they are most needed.
Restricted Gift: A donation given with donor-imposed conditions requiring the funds to be used for a specific purpose, program, or time period.
Planned Gift: A charitable contribution arranged during a donor's lifetime but typically transferred at death — such as a bequest, charitable remainder trust, or life insurance policy.
In-Kind Gift: A non-cash donation of goods, property, or services rather than money, which must be valued and acknowledged separately from cash gifts.
Qualified Appraisal: An IRS-required independent appraisal of non-cash property valued over $5,000, conducted by a qualified appraiser and attached to the donor's tax return.
Donor-Advised Fund (DAF): A charitable giving vehicle administered by a sponsoring organization through which donors contribute assets, receive an immediate tax deduction, and recommend grants over time.
Quid Pro Quo Contribution: A payment made partly as a donation and partly in exchange for goods or services, requiring special disclosure language in the acknowledgment letter.
Charitable Remainder Trust (CRT): A planned giving arrangement in which a donor transfers assets to a trust that pays income to the donor or beneficiaries for a term, with the remainder passing to the nonprofit.
Gift Review Committee: A designated group — typically including the executive director, finance staff, and a board member — responsible for evaluating non-standard or complex gift offers before acceptance.
Acknowledgment Letter: A written receipt sent to a donor confirming the gift amount or description, the date received, and a statement of whether any goods or services were provided in exchange.

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At a glance

What is a Nonprofit Gift Acceptance Policy?

Why You Need This Document

Which variant fits your situation?

Common mistakes to avoid

❌ Accepting restricted gifts without a written gift agreement

❌ No explicit list of prohibited gift types

❌ Acknowledging non-cash gifts at donor-stated value

❌ Letting the policy go unreviewed for more than three years

The 10 key sections, explained

How to fill it out

Insert your organization's legal name and tax ID

Define your accepted and review-required gift categories

Set your approval authority thresholds

Specify valuation and appraisal rules

Draft acknowledgment letter standards

Name the Gift Review Committee members by role

Cross-reference your conflict-of-interest policy

Present to the board for adoption and record the vote

Frequently asked questions

How this compares to alternatives

vs Conflict of Interest Policy

vs Donation Receipt Template

vs Nonprofit Bylaws

vs Fundraising Plan

Industry-specific considerations

Higher Education

Healthcare and Hospitals

Arts and Cultural Organizations

Community Foundations

Template vs pro — what fits your needs?

Glossary

Part of your Business Operating System

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