Tim---The Group has given good tips and leads to your search for “in-kind” donations of products. And yes, do balance your time and effort to the “chase” for such goods, but regardless the volume or value of such goods gotten, you are wise to have an eye toward the possible building of those long-term relationships.However, I would not solicit such gifts as the “path of least resistance.” Sure, when you have a definite product need, you go for it. If you need paint, you ask a paint company to donate it. Here, the company is likely to give you more paint than dollars to buy paint. However, for the most part, don’t forego the chance for cash because the getting of a product might be easier---for the company or for you. You go case by case.
As well, I would not spend much time looking to distant, possible benefactors. When it comes to the solicitation of corporate contributions in any form, area of service and geography are often important deciding factors. A company rarely gives to a community organization that does not provide service to an area in which a substantial number of its employees either live or work. To put it bluntly, a corporation usually must have a facility or business connection in an area if it is to be successfully solicited.
As well---much too often---a cavalier attitude is attached to the donation of a company’s products by some non-profits as, “Oh well, they make the stuff anyway in such large quantities and it doesn’t cost them much to make it.” They trivialize the value. I’ve seen far too many individuals with non-profit organizations who do not recognize that in-kind gifts should be recognized and treated as being good as cash.
On that point, regarding value of such gifts, let’s now talk about your good question regarding any “certain PR value” which you could attach to such a donation. It could indeed make a positive difference. Here’s why and how, from my experience.
Just remember to give public credit for the cash value of an in-kind gift. The IRS won’t let the donor deduct that amount, but you should publicly acknowledge what the gift was worth to the organization---what it would have cost you “retail.” (Let’s not even think of what the actual manufacturing cost might be.)
I suggest that you can acknowledge gifts of products in strict keeping with the IRS rules. You can express your thanks to the donors of such In-Kind gifts in a greater, more meaningful, and appreciated way---thus providing the best in PR.
In general, to cover all such in-kind gifts, we know that declarations of value which non-profit organizations might assign to those donated in-kind gifts will not be of use to donors to claim for tax-deductions. Such valuations, when applicable relative to “fair market value” need to be assessed and certified elsewhere---if they can be---and that is the donors’ responsibility. That is something they subsequently need to resolve with the company auditors---whose work in turn will need to be reconciled with IRS regulations, or they treat it as a business expense. That’s not our concern.
However, since we must not make outright official-sounding declarations of in-kind gift values to donors, this unique aspect surrounding in-kind gifts often causes us to acknowledge them in understated and almost offhand ways---unlike the clearly stated amounts we cite for gifts of cash. As well, with gifts of company cash, we can directly relate the dollar value to specific programs and services made possible by such support. We do not necessarily express in-kind gifts as effectively and graphically. I always tried to acknowledge in-kind gifts with descriptions of their practical value to us and to make some reference of their worth to us in dollars. I suggest that you could treat your acknowledgment of in-kind gifts in somewhat the following way:
“Thank you for the generous gift of an Epson Stylus C84 printer. While, according to IRS regulations, you will not be able to declare the value of the printer which you delivered to us on February 16, 2006, we can say that but for your generosity we would have had to expend approximately $100 for that much needed printer. These are dollars we are able to apply directly to support the programs and services we provide for the well-being of those whom we serve in our community.”
Tim---As well, and I think quite important, in appreciation for such in-kind contributions, we always publicly recognized those gifts in annual reports with the donors’ names listed under the respective gift category of what the products (or time, objects, or services) would have cost us “retail.” Naturally, those figures would not be IRS-deductible amounts either, but such public gestures on our part regarding the “market worth” of the in-kind gifts to our organization was always greatly appreciated by the donors.
I can tell you with a good deal of certainty that, in this case, the XYZ Office Supply Company would be quite pleased to see its name listed in your Annual Report under the contribution category of “$100 to $250,” right there with the givers of cash. We did this for all my years as D/D with never a problem with the cash givers, but with more expressions than I could count of appreciation---and pleasant surprise---from the In-Kind donors of products (and services, time, objects, etc).
Tony Poderis
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