When in-kind donations become too costly to handle
- The Chronicle of Higher Education profiles the obstacles in managing gifts of property and other in-kind donations, which can often incur costs for development offices and institutions, or come with extraordinary requirements in handling.
- A survey of institutions revealed that more than 280 schools received such gifts in 2015, which can create expenses for insuring or restoring properties in order to realize any profit on them in the future.
- Officials say that giving donors clear expectations for the kind of in-kind gifts that will be received, and making needs clear for certain donations can help in reducing the number of costly donations or creating bad relationships with donors.
Fortunately, most large institutions are in good position to receive unique in-kind gifts that can be used in museums, specialized motor pools and other areas of need. But for smaller institutions, gifts like cars, furniture and other specialty items provide more hassle in protecting and maintaining, and cannot be liquidated to support scholarships or development of the institution.
Working with donors before they make donations is an ideal way to engage philanthropic partners to meet institutional needs, while still encouraging them to give as their wishes may dictate. Receiving a vehicle today for specialized use, when planned between the donor and the school, may result in a million dollar bequest or check down the line.
- The Chronicle of Higher Education What to do with a Mustang, and other lessons in handling gifts of property