If you haven’t dipped your organization’s toes into the noncash waters, or if you’re already promoting noncash donations but you’re bone dry when it comes to new ideas for growing that channel, then now is the time to wade on in.
Want to know why it’s worth opening a new giving channel? People have 90% of their wealth in their stuff. Cars, designer purses, electronics – this is stuff that people don’t use anymore, but still hold some monetary value. Nonphysical items like stocks and cryptocurrency tend to slip the mind of donors, but those too are considered noncash and can also be donated.
Organizations that are equipped to take advantage of this fact get a share of the billion-dollar pie in noncash items that are donated every year. When you partner with a trusted, experienced liquidator, you create an additional revenue stream with zero additional work.
Considering the good news below, this is truly a win-win situation.
How Do I Get Equipped?
Here’s the beautiful part – you don’t have to get equipped because we already are!
The inherent learning curve, risk, and heavy administrative burden of managing all that stuff make it prohibitive to many organizations to accept and liquidate noncash donations. So, iDonate does all the work for you.
There is no need to:
- Store or dispose of unsellable items
- Find buyers or sellers
- Manage accounting, preparing titles, or receipting
- Worry about IRS compliance, such as the required Form 8283
- Arrange or pay for transit/shipping
- Take on the risks, including whether you’ll net a profit after all these factors are managed
What Are the Benefits to My Nonprofit?
Because the donation is handled through your online iDonate giving form, the entire process is facilitated by an iDonate representative. You don’t have to be involved in any part except cashing the check once the item is sold.
There are no guarantees on the amount of revenue you can expect, of course, but we’ve seen some amazing donations, including:
- Movie posters ($1,500)
- Rolex watches ($5,800 and $9,000)
- Madame Alexander dolls ($900)
- Gulfstream RV ($8,500)
- Wellcraft boat ($55,000)
- A1 Diesel Pusher (almost $100,000)
- Corn ($850,000 over a 5-year period)
- Designer purses ($500 - $1,000 each)
- Miscellaneous items that provided 175,000 Bibles
How Does Noncash Benefit Donors?
It’s easy for them, too.
Just as with cash, donors gain tax deductions for their donations. All they have to do is fill out Form 8283. But with noncash they can enjoy helping their favorite causes even if they are cash-strapped and dispose of items they no longer need without having to manage all those tasks we mentioned above. iDonate takes care of all the details.
Making the Most of Your Noncash Donations
Most people will not assume your organization accepts noncash items. We’ve found that many organizations don’t adequately publicize their ability to accept noncash gifts. Whether you’re already accepting noncash gifts or just looking to get started, here are a few things to consider:
- Noncash donations should be promoted right alongside donations of cash. If they appear as an afterthought, you’re missing out on making a holistic — and more compelling — ask. As well, make sure donors understand the process for donating noncash items and how to fill out the required Form 8283.
- Make it easy for potential donors to see the types of things they can donate. Just as Amazon has a recommendation engine, think about creating a donation recommendation engine. For instance, if someone donates a computer, make sure they know that they can donate other kinds of electronics and provide some examples of what your organization is willing to accept.
- Make it easy for donors to share their donation experience with others. Most people aren’t aware of their options for noncash giving, so help your donors share that information through their social media connections.
For decades now, advances in technology have made it easier and easier for businesses to match supply with demand. Isn’t it about time nonprofits started doing the same for their donors?