Today’s Nonprofits Must Incorporate New Strategies, Better Planning

In-kind Resources Can Help Leverage Dwindling Cash Resources

All nonprofit boards today expect their staff to raise funds from corporate donors as if it is a relatively easy task. This is a hefty challenge for all nonprofits, large or small, as they must compete with many others in a lagging economy. 

Of the $300 billion donated in the United States annually, less than 5 percent ($13 billion) is contributed by corporate donors (Giving USA). Almost half of those corporate donations are non-cash contributions.

Although non-cash donations have increased substantially over the past five years, many of the 1.6 million nonprofits in the United States are not prepared or equipped to receive product donations. As we creep closer to a possible recession, more of them should consider these resources as a useful and necessary tool for leveraging cash resources.

While it is easier to take cash donations that can be neatly deposited in and disbursed from the nonprofit bank account, more than $6 billion worth of in-kind corporate donations should not be ignored. They are valuable resources that can boost the programs of those who are creative enough to use them. Accepting and soliciting in-kind donations requires planning, some storage and volunteer help. 

For example, instead of spending money on office supplies, community nonprofits could receive these products from donors such as Office Depot. Those participating in this company’s donation program are required to pick up donated products 3-4 times a year at the local store. This effort allows the nonprofit to better use its cash resources for program services. Surprisingly, many nonprofit organizations do not include product donations in their fundraising efforts because their staff is already overstretched.

However, in today’s current world of shrinking government funding and donor cash contributions, nonprofits must consider leveraging their resources in order to maintain or maximize their program impact. Seeking corporate in-kind donations would allow them to enhance their program output. Development staff should consider all resources—both cash and non-cash—to maintain organizational impact. Finding the resources necessary to address the wide range of social issues facing our society today requires creative thinking! 

A wonderful housing program in a rural Pennsylvania community has found that building homes for low-income families is no longer financially feasible on a regular basis. Instead of sitting idle and wait for additional funding, this program is helping the community in a unique way. By receiving building and home improvement supplies donated by The Home Depot (Framing Hope Product Donation Program), this small nonprofit distributes these donated products to low-income people in the community who are struggling to maintain their homes. Creativity allows them to continue to address needs in their community.

Several other stories that attest to the perseverance and creativity of community nonprofit organizations across the country are available at www.giftsinkind.org. Feel free to email me and I will be happy to add you to our newsletter list.