Setting Up An In-Kind Donation Fundraiser: 5 Steps

In-kind donations cut out the middleman when it comes to fundraising. Rather than requesting money so your nonprofit can purchase necessary supplies, supporters donate the supplies directly to you. 

This is especially effective for charitable organizations that need items local donors will likely have on hand, such as schools, which request art supplies and sports equipment for students; food banks, which gather non-perishables to provide community members; and thrift stores, which rely on donations to stock their shelves.

If your nonprofit fits this description, then an in-kind donation fundraiser may be right for you. Let’s walk through the five main steps of these types of campaigns to help your organization gather these gifts.

1. Establish your needs.

An in-kind donation fundraiser is only successful if your nonprofit receives items it can use. To guide your supporters toward helpful donations, add directions to your website and marketing materials that specify: 

• Needed items. List items your nonprofit would like to see donated. These might be specific types of products or general descriptions based on your organization’s needs. For instance, a homeless shelter might call out its need for new socks and underwear, whereas a private school planning a charity auction might simply request “summer goods” or “family-friendly presents.” 
• Item condition. Well-meaning supporters may donate items your nonprofit can’t use. Prevent this awkward situation by clarifying what your nonprofit can and cannot accept. For example, a thrift store might specify that clothes should be new or gently worn and free of stains and holes. 
• Dropoff procedure. Explain how and when supporters can donate their items. You could ask them to simply leave gifts at a pre-determined location or contact a member of your team to facilitate the donation. If your nonprofit has a deadline for its fundraiser, specify when donations must be submitted by. 

If your nonprofit plans to accept in-kind donations continually, ensure your list of needed items and item condition requirements are always available. Check out Atlanta Mission’s urgent needs page for an example of how to set up one of these pages.

2. Promote your fundraiser.

When you first launch a new in-kind donation fundraiser, marketing should be your priority. By getting the word out, you can drive a quick burst of support and earn donations from individuals learning about your nonprofit for the first time.

Double the Donation’s guide to nonprofit marketing highlights a few communication channels useful for in-kind donation fundraisers: 

• Email. Most nonprofits turn to email to promote their fundraisers to current supporters. Send an email series to announce your fundraiser, share details, encourage submissions, and thank participants.
• Social media. To attract new supporters, announce your in-kind fundraiser on platforms like Facebook and Instagram. Nonprofits that operate thrift stores might also use this as an opportunity to show off their current inventory. 
• Direct mail. In-kind donation fundraisers tend to have a lot of directions, which requires a communication channel that supports long-form communication. As such, you can get the word out to your local community by mailing them flyers with instructions for navigating your fundraiser. 
• Newspaper. As supporters need to drop off physical gifts in an in-kind fundraiser, these campaigns almost always rely on the local community for contributions. As such, consider contacting your local newspaper to purchase an ad spot.
• Radio. Like newspaper ads, local radio stations can be useful for promoting your fundraiser to your immediate community. Specifically, research local stations willing to help you promote your cause.

For current supporters, ensure you reach out to them through their preferred communication channel to enhance the donor journey. This will increase the chances that they continue to donate to in-kind and other types of fundraisers in the future. 

3. Partner with other organizations. 

To increase participation, work with other local organizations to set up dropoff points and promote your fundraiser. For instance, food banks often work with schools to host canned food drives.

However, there’s no need to limit yourself to just other mission-driven organizations. For example, you might partner with apartment complexes to encourage them to promote your fundraiser to their residents, or you could tap your corporate sponsors to arrange in-office drives. 

This approach opens your fundraiser to new audiences and simplifies giving by allowing donors to drop off their items where they work, live, shop, or go to school. 

4. Plan inventory processing.

Once you start receiving donations, your nonprofit must start the next phase of your fundraiser: processing items. Due to the nature of in-kind donations, the items you receive may be random, and you’ll need to sort through what was donated to determine how well the campaign addressed your needs. 

To discuss inventory processing and why it matters, let’s explore the example of a nonprofit-run thrift store. Thriftcart provides this helpful image explaining why inventory management is so vital to these types of organizations:

• Finances. In-kind donations must be recorded and reported, just like monetary donations. Nonprofits are required to provide donation receipts for gifts of $250 or more, which may apply to rare or expensive items.
• Inventory optimization. Due to the uneven nature of in-kind donations, inventory processing allows you to assess what items are under or overstocked. This enables you to actively maintain your items wishlist to steer donations toward your most pressing needs.
• Price analysis. Thrift stores sell items like businesses do, and thus should be aware of supply and demand trends. Assessing what items donors give away can inform pricing strategy.
• Customer experience. Knowing what your thrift store has in stock helps you better promote offerings to customers. 

Aim to have your staff process donations as they come in to avoid accumulating a backlog. This also goes for in-kind fundraisers with a deadline. Reporting how many items your nonprofit has received throughout your fundraiser can inspire last-minute donations. 

5. Thank participants.

Just like with any other fundraiser, participants should be thanked for their donations. By expressing your appreciation, you can build stronger relationships with these supporters, increasing their chances of contributing to your next fundraiser. 

Create a thank-you email template you can fill in with supporters’ names and contributions. Shout out the specific gifts they made to show your appreciation. Plus, if they submit a highly needed or valuable item, note it in their donor profile as a reminder to reach out during your next in-kind fundraiser. 

In-kind donations provide your nonprofit with the supplies it needs to function. To boost your inventory, assemble a list of needed items, promote your fundraiser online, plan to process received gifts, and thank everyone who participated. By following these steps, you will run an efficient and organized in-kind fundraiser that will help you further your mission.