Chazin and Company CPA, Jackie McLaughlin, provides insights into the importance of gift acceptance policies, the challenges of valuing non-cash donations, and the need for thoughtful decision-making in the nonprofit sector.
The conversation begins with a look at whether nonprofits should accept all bequests and gifts. Jackie shares an example of a nonprofit that accepted all donations and what occurred over time. She emphasizes that nonprofits should have a gift acceptance policy to determine what gifts they will accept and what they won't. This policy should consider the physical operating implications and the hard and soft costs associated with accepting certain types of gifts.
The challenges of valuing non-cash gifts, such as art collections or vintage cars also play a role in the gift acceptance decisions. Jackie highlights the importance of having policies in place and suggests that nonprofits should rely on appraisers to determine fair market value. She also mentions that non-cash donations need to be recorded and reported on the statement of activities. The conversation touches on the fluid nature of gift acceptance policies and the need for periodic reviews and policies should be adjusted based on the organization's experiences and lessons learned.
The emotional aspect of gifts and how nonprofits should handle situations where donors have emotional attachments or overvalue their donations is also important. Jackie suggests that nonprofits should rely on their gift acceptance policy to respectfully decline gifts that do not align with their guidelines, while emphasizing the sentimental value of the donation.
The segment concludes with a discussion on the potential pitfalls of non-cash donations, highlighting the costs involved in liquidating and managing these donations and the potential impact on staff time and resources.
Chazin and Company CPA, Jackie McLaughlin, provides insights into the importance of gift acceptance policies, the challenges of valuing non-cash donations, and the need for thoughtful decision-making in the nonprofit sector.
The conversation begins with a look at whether nonprofits should accept all bequests and gifts. Jackie shares an example of a nonprofit that accepted all donations and what occurred over time. She emphasizes that nonprofits should have a gift acceptance policy to determine what gifts they will accept and what they won't. This policy should consider the physical operating implications and the hard and soft costs associated with accepting certain types of gifts.
The challenges of valuing non-cash gifts, such as art collections or vintage cars also play a role in the gift acceptance decisions. Jackie highlights the importance of having policies in place and suggests that nonprofits should rely on appraisers to determine fair market value. She also mentions that non-cash donations need to be recorded and reported on the statement of activities. The conversation touches on the fluid nature of gift acceptance policies and the need for periodic reviews and policies should be adjusted based on the organization's experiences and lessons learned.
The emotional aspect of gifts and how nonprofits should handle situations where donors have emotional attachments or overvalue their donations is also important. Jackie suggests that nonprofits should rely on their gift acceptance policy to respectfully decline gifts that do not align with their guidelines, while emphasizing the sentimental value of the donation.
The segment concludes with a discussion on the potential pitfalls of non-cash donations, highlighting the costs involved in liquidating and managing these donations and the potential impact on staff time and resources.