Nonprofits running thrift stores or re-stores often rely on more than cash donations to stay operational. In-kind donations, like clothing, furniture, or services, help fill gaps and keep your organization running smoothly. These in-kind contributions allow you to fulfill your organization’s mission without spending extra funds.
Receiving in-kind donations involves a few extra steps for your thrift store. But with a straightforward process and the right tracking tools, you can make it easy to manage and keep things simple for your donors.
What Are In-Kind Donations?
In-kind donations refer to non-monetary contributions to a nonprofit, like donated goods or services. These types of gifts can include anything from physical items to professional expertise, helping organizations meet their needs without using financial resources.
What are the benefits of in-kind donations? These gifts supply tangible resources that can be sold or used to support operations. Whether clothing, furniture, or other items, in-kind donations allow you to keep shelves stocked without spending on inventory. They also create opportunities to engage donors who may prefer giving items over money, diversifying support for your mission.
Common Types of In-Kind Donations
In-kind gifts come in various forms and can provide essential support for your nonprofit’s operations. Here are some of the most common types that thrift stores and other organizations may receive:
- Clothing and accessories: Donated gently used or new apparel, shoes, and accessories that can be sold to generate revenue or offered to those in need.
- Furniture: Items like chairs, tables, or sofas that can be resold or used to furnish community spaces.
- Household goods: These are everyday items like kitchenware, linens, and small appliances that are in demand by shoppers and those seeking assistance.
- Professional services: Contributions from professionals in legal, accounting, marketing, or repairs, either offered at a reduced hourly rate or pro bono, to help lower operational expenses.
- Office supplies: Equipment like computers, printers, or paper that supports the organization’s administrative needs.
When you receive an in-kind donation, it’s important to have a set process for accepting and managing these gifts. This helps keep everything organized and makes it easier for your organization to use the donations.
How To Accept In-Kind Donations
Accepting in-kind donations can provide valuable assets for your store, but making the most of them takes more than saying “yes” to everything. Clear guidelines on accepting and handling donations keep your store organized and help each contribution support your mission. Here are some practical steps to accepting in-kind donations and putting them to good use.
1. Be Specific With Requests
Clearly define what types of in-kind donations your organization accepts, whether goods or services. Start by creating a list of needed items, like gently used furniture, clothing, or professional services like legal or accounting help. Make these guidelines visible on your website, donation drop-off points, and social media profiles.
Be upfront about items you cannot accept or don’t currently need, like damaged goods or hazardous materials, to avoid confusion. Train staff to communicate these guidelines to keep things consistent, making it easier for donors to give the right contributions.
2. Create a Clear Donation Procedure
Having a straightforward procedure for donors is critical to keeping things organized and efficient. Draft instructions that outline where and when donors can drop off items, such as specific days, hours, or locations. If your store can’t accept certain items, like mattresses or large appliances, make sure that’s clear upfront to avoid confusion.
For services, specify how donors can offer expertise through scheduled appointments, volunteer hours, or project-based contributions so both parties know what to expect.
3. Set Up a Donation Dropoff or Pickup System
To make it convenient for donors to give good-based donations, designate specific times and locations for dropoffs and provide a pickup option for larger items. Make it even easier by using clear signage or color-coded dropoff zones to guide donors. Offer contactless pickup scheduling through a quick online form or phone call so donors enjoy a hassle-free experience when contributing to your store.
Finally, consider letting donors book drop-offs or pickups online so your team can avoid scheduling headaches. Block out busy days, request photos of large items in advance, and streamline the process. It’s a practical way to keep donations flowing while sticking to your store’s guidelines.
4. Acknowledge the Donation
After receiving a donation, it’s important to formally acknowledge it with a thank you note or receipt that includes a brief description and estimated value for tax deductibility purposes. Not only does this documentation help donors with their records and tax filings, but it also supports your nonprofit’s transparency when preparing Form 990.
Generate automated thank you notes and e-receipts using your POS system for physical contributions and donated services. This saves time and makes sure every donor gets a prompt, personalized acknowledgment. It’s a simple gesture that goes a long way in building lasting relationships with your supporters.
5. Track Donation Details
Use a POS system to track and record in-kind donations automatically. The system captures donor details, item descriptions, and estimated values for physical donations, simplifying inventory management by integrating them directly into your sales system. This helps you manage stock efficiently and maintain accurate records of available items in your store.
When services are donated, record the type of service, donor information, and its estimated value for proper documentation. Tracking donated goods and services over time helps you monitor trends, stay organized, and reduce manual data entry, allowing you to focus on your mission.
Simplify In-Kind Donation Tracking With ThriftCart
If you’re in the market for a solution that will help you simplify gift acceptance for in-kind donations, take a demo of ThriftCart. Our comprehensive software is designed specifically for thrift stores and nonprofits to help you track and manage donations.
ThriftCart lets you assign values, generate tax receipts, and keep detailed records in one place. Its automated features also help you monitor inventory, stay compliant with IRS regulations, and easily communicate with donors.
Streamline the entire donation process with an all-in-one software, freeing up time for your team to focus on your mission. Book a demo today to see how ThriftCart can support your organization.
