While additional contributions are almost always welcomed, organizations should exercise care in how they accept contributions and interact with the donor. Gift acceptance policies define gifts acceptable to an organization and the manner in which such gifts must be managed. Not only can a gift acceptance policy save an organization from burdensome restrictions, costly fees and other liabilities, it also responds to the IRS’ suggestion that organizations adopt such a policy.
Legal Authority
Several federal and state statutes and regulations may apply to specific gifts given to organizations and vary according to the property gifted. A parcel of real property may be subject to state property laws and environmental laws. An automobile or other vehicle may be subject to licensing regulations and emissions tests.
Form 990 Disclosure
An affirmative answer to Part IV, questions 29 or 30 trigger the requirement to complete Schedule M.
Question 29: Did the organization receive more than $25,000 in non-cash contributions? If “yes”, complete Schedule M
Question 30: Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “yes”, complete Schedule M
Schedule M of the IRS Form 990 lists types of property contributed, number of contributions and associated revenues reported and method of determination. Question 31 on Schedule M inquires:
Question 31: Does the organization have a gift acceptance policy that requires the review of any non-standard contributions?