Managing in-kind donations means being able to say no

Aug 29
3 min read

Updated: 2 days ago

Introduction

Someone offers three hundred bags of donated clothing, most of it unsuitable. Someone else has a van of office furniture that does not fit your space. Both are being generous and both are creating work.

Small organisations accept almost everything because refusing feels ungrateful. The result is storage filled with things nobody can use, volunteer time spent sorting, and disposal costs paid quietly out of funds meant for something else. Good in-kind donations are genuinely valuable; managing them means being able to tell the difference and to say no.

1. Managing in-kind donations starts with a policy

Decide in advance rather than at the door.

What you accept, in what condition, in what quantity, and what you never accept. A written policy lets any volunteer decline politely without it feeling like a personal judgement on the donor.

2. Publish a specific wanted list

The most effective change most organisations can make.

"We need tinned food, unopened toiletries and new socks" produces useful donations. "We welcome any contributions" produces whatever people are clearing out, and the difference in usefulness is enormous.

3. Count the cost of accepting

Every in-kind gift carries handling costs.

Transport, storage, sorting, cleaning, repairs, and disposal of what cannot be used. A donation whose handling costs exceed its value is a net loss, however well intended, and the loss is usually paid in volunteer hours that nobody recorded against it.

4. Learn to decline gracefully

The skill that protects everything else.

Thank them, explain what you can use and why, and suggest an alternative destination. Most donors accept this readily, and many return with something you actually need because now they know.

5. Watch for donations that are really disposals

A recurring pattern worth naming.

Goods that are broken, expired, unsellable or would cost the donor money to dispose of. Some offers are a waste-disposal saving dressed as generosity, and accepting them transfers that cost to you. Asking what condition the items are in, and whether they have been offered elsewhere first, usually settles the question politely.

6. Handle food, medicines and equipment by the rules

This is a compliance matter, not a preference.

Food safety, expiry dates, electrical testing, medical items and anything for children are usually regulated. Find out what applies in your jurisdiction, because accepting and distributing unsuitable goods carries real liability.

7. Value and record what you accept

Both for accounts and for gratitude.

Many jurisdictions require in-kind gifts to be recorded, and funders often want to see them. Recording also lets you thank donors properly and understand how much of your delivery depends on donated goods.

8. Thank in-kind donors like financial ones

A frequently missed group.

Somebody who supplies goods or professional services every month is a significant supporter and often receives nothing but a verbal thanks at the door. Bring them into your donor communications properly.

9. Ask for what you would otherwise buy

The most valuable in-kind gifts are the boring ones.

Printing, accountancy, legal advice, IT support, transport, venue hire. These replace real budget lines directly, and companies are frequently more willing to give services than cash because the cost to them is spare capacity rather than money out of the account.

Review annually what you accepted and what you disposed of. Organisations that do this usually find one or two recurring donation types that have cost more than they contributed for years, and a polite conversation ends them.

Conclusion

Write a policy on what you accept, because the ability to decline is what makes in-kind giving useful rather than costly.

Publish a specific list of what you need instead of welcoming anything, cost the handling before accepting, learn to refuse gracefully with an alternative suggestion, recognise offers that are really disposals, follow the rules that apply to food, medicines and equipment in your jurisdiction, record and value what you take in, thank in-kind donors as properly as financial ones, and actively ask for the professional services you would otherwise pay for.