In-kind contributions, such as vehicles, real estate, equipment, and other tangible assets, can be a transformative resource for nonprofits. These non-cash donations can significantly advance your organization’s mission without depleting cash reserves. However, the value of such contributions is not only financial. Just as vital is the donor’s perception that their gift is being used wisely, transparently, and ethically. 

For nonprofit leaders, building and maintaining donor trust in the handling of high-value in-kind donations isn’t just a best practice; it’s a prerequisite for continued giving. When trust is high, it encourages repeat donations, word-of-mouth referrals, and long-term donor engagement. When it’s not, organizations risk damaging their reputation and losing critical support. 

Valuation Transparency: A Foundation for Trust

One of the first steps in stewarding high-value in-kind gifts is properly determining and communicating their fair market value. Donors need confidence that your organization has the expertise — or the access to third-party experts — to assess the worth of their contributions accurately. 

While the IRS requires donors to obtain an independent appraisal for non-cash gifts over a certain threshold, the nonprofit’s role in valuation can’t be overlooked. Be prepared to explain how values are determined, especially for vehicles or equipment. Use third-party appraisal services, auction benchmarks, or valuation software when necessary. This helps donors feel that their gift is being taken seriously and handled with care. 

Avoid inflating the value of in-kind gifts in donor reports or marketing materials. Overstated claims can raise red flags, especially if gifts are later sold or repurposed. A consistent, defensible approach to valuation shows donors that you operate with integrity. 

Communicating Impact Clearly and Honestly 

Once an in-kind gift has been received, it’s essential to connect the dots between the donation and your organization’s mission. Donors want to know not just that their gift was accepted, but how it made a difference. 

Did a donated vehicle help a veteran secure reliable transportation to a new job? Was a donated trailer sold at auction to fund housing for families in need? These stories bring the donation to life. Sharing them not only reinforces donor trust but also strengthens the donor’s emotional connection to your cause. 

Whenever possible, personalize your communications. A thank-you letter that includes specific information about how the gift is being used can leave a lasting impression. If the item was liquidated (as is often the case with cars or boats), explain how the proceeds are allocated. Transparency about the journey from donation to mission impact builds a culture of trust and accountability. 

Ethical Stewardship of Non-Cash Gifts

Ethical handling of high-value in-kind contributions requires strong internal policies and thoughtful governance. Not all gifts are equal in utility or appropriateness. Some items may have restrictions, carry liabilities, or incur maintenance costs that outweigh their value. Others may be difficult to resell or fall outside the scope of your organization’s mission. 

Develop a gift acceptance policy that outlines the types of in-kind contributions your organization can reasonably accept, how they will be used or disposed of, and the criteria for rejection. This document helps set expectations for donors and ensures your staff and board have a consistent framework for evaluating gifts. 

In cases where a donation is sold, it’s important to document the sale process — how the item was marketed, whether multiple bids were received, and how the final sale price aligned with appraised value. Full records help establish that the gift was handled responsibly and with donor intent in mind. 

For items retained by the nonprofit, such as vehicles used for service delivery, maintain logs of usage, condition, and upkeep. Donors appreciate knowing that their contributions are not only useful, but also well-cared for. 

Reporting With Clarity and Consistency

Just as with financial contributions, robust reporting practices for in-kind gifts reinforce trust and credibility. Include in-kind support in your organization’s annual report, segmented clearly by category — vehicles, equipment, goods, services — and provide context about how those gifts were utilized. 

Some nonprofits choose to issue year-end summaries for in-kind donors, even though tax documentation is the donor’s responsibility. These summaries, while not official receipts, offer a valuable touchpoint that reinforces gratitude and transparency. 

Where appropriate, share aggregate impact data with your broader community. For example, highlight that vehicle donations raised a specific amount for programs or served a certain number of beneficiaries. Such data tells a larger story of how in-kind support contributes to the organization’s overall health and sustainability. 

Building Donor Relationships Through Stewardship

High-value in-kind donors are often high-intent supporters. They’ve taken time to transfer ownership, arrange delivery or pickup, and trust your organization with something tangible. These actions often reflect a deeper commitment than a one-time cash gift. That’s why stewarding these relationships can yield long-term benefits. 

Follow up with donors beyond the initial thank-you. Share updates on how their gift or similar gifts are making a difference. Consider inviting them to events, tours, or impact presentations. If appropriate, offer recognition in donor spotlights or newsletters, with their permission. 

Strong stewardship turns one-time givers into lifelong advocates. It also positions your nonprofit as a trustworthy partner for those considering other non-cash contributions in the future. 

Leveraging In-Kind Support for Long-Term Growth

High-value in-kind gifts offer more than just immediate utility or liquidity. When handled with transparency and care, they can be part of a broader strategy to build financial resilience, engage new audiences, and diversify revenue streams. A nonprofit that excels at managing in-kind contributions sends a strong message to donors: We value your gifts, we manage them responsibly, and we put them to work for real impact. 

Whether you’re managing donated boats, cars, trailers, or ATV donations, your internal practices should reflect a high standard of ethical stewardship and donor care. By doing so, you ensure that every contribution — no matter the form — moves your mission forward while reinforcing the trust at the heart of effective philanthropy. 

About the Author:

Jeremy Silverstein is Vice President of Operations and Vehicle Dispatching at Veteran Car Donations. During the years he’s been with the organization, he has become quite an expert in the industry and has handled tens of thousands of donated vehicles.

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