1. Fundraising is a regulated activity, and the IRS has donor documentation requirements needed to claim a deduction as a charitable contribution.
  2. Understand the differences in use, reporting, and accounting of funds with donor restrictions, funds without donor restrictions, and board-designated funds.
  3. A formal commitment to make a specific contribution amount is a pledge. A donation given with the intent that the principal will be invested in perpetuity is an endowment, and as defined by the donor, the organization may use the earnings for general operations or specific purposes.
  4. Typically goods or professional services, in-kind contributions are donations other than cash or pledges and are important for your organization to track.
  5. For effective and timely information to reach individuals and institutions funding your organization’s work, alignment of fundraising and financial reporting is essential.

Here are some questions to think about...

  • Is the nonprofit being thoughtful as you make decisions about the funds you apply for and accept?
  • When the organization requests and accepts funds with donor restrictions, are you considering any additional tracking that may be involved and how you will fulfill the requirements?

Next steps...

Chapter Materials

Finance Unlocked For Nonprofits Guide

Start by downloading the Finance Unlocked for Nonprofits guide that includes practice activities, worksheets, and ...

Chapter: Giving – Guide

Download this chapter's guide before watching the video.

Chapter: Giving – Video Transcript

Video transcript with visual descriptions for the Finance Unlocked for Nonprofits Giving video

Public Support Test

Public Support Test memo by LaVerne Woods, Esq.

Sample Gift Acceptance Policy

Sample Gift Acceptance Policy from National Council of Nonprofits
Skip to content