20 Types of Donations All Nonprofits Need to Know About

Donations are the foundation of any nonprofit organization and provide the resources it needs to meet daily operating costs so they can fulfill their mission in a substantial way. Yet not all charity leaders realize there are a lot more options when it comes to all the kinds of donations they can legally accept that the regular one time cash donation they’re used to.

In fact, we have listed fourteen types of gifts as well as six more alternative types most people aren’t even aware of, including your donors. Yet all it takes is spreading awareness through your organization on all the types of gifts acceptable, and perhaps a little work in order to accept them.

In addition, times are changing. Different audience types like giving differently, and if you’re not in a position to be able to accept their charitable offering, then it’s your charity that suffers. For example, cryptocurrency is making a surge, and it is just as important as a cash donation. Yet many leaders aren’t even aware they can accept crypto nor have a way of taking the contribution.

Then there are the donors that prefer a simple one-time contribution while others may wish to offer ongoing support or donate goods and services. Each type of donation brings unique benefits. Monetary gifts provide immediate funds for operations and programs. Non-monetary contributions, such as in-kind donations or volunteer time, reduce costs and expand resources. Planned gifts and matching donations open doors to substantial long-term funding.

Through diversifying donation options, you’re helping to guarantee the longevity of your organization and creating a solid financial foundation that doesn’t rely on one form of funding. Whether through financial gifts, goods, or services, each contribution plays an important part in driving your nonprofit’s mission forward.

The Different Donation Types for Your Nonprofit

1. One-time donations

One time donations are a single contribution made by a donor without a commitment for future gifts of any kind. This is the most common type of giving and although many donations are a one time opportunity, many individuals do end up giving more sometime in the future. So even if someone doesn’t make an actual commitment, don’t give up on marketing to them.

Example: A person donates $50 online to support a nonprofit’s holiday campaign.

2. Recurring donations

Recurring donations are a great way to fund your charity as these contributions are often automated and are deposited regularly whether it’s monthly, quarterly or even yearly. They’re a great way to legally accept donations as you can map out your budget easier and know when each deposit will be made. You will need to create a monthly giving program and offer donors the chance to sign up. Luckily with platforms like Paybee the process is simple and very lucrative.

Example: A donor sets up a $20 monthly contribution to help fund a nonprofit’s ongoing programs.

3. Planned donations

Planned donations or legacy donations are gifts someone plans to make that are intended to make a lasting impact. They’re often often given through wills, trusts, or bequests. These types are usually much larger donations, and sometimes can even include land or a person’s whole estate. There are tax advantages to this sort of strategic estate planning for the donor and of course the charity doesn’t take on any taxes. Although often overlooked as a type of contribution, these gifts can be substantial and should always be mentioned in your marketing plan.

Example: A donor names a nonprofit as a beneficiary in their life insurance policy or leaves their vacation home to a nonprofit animal rescue in their will.

4. Tribute or Memorial donations

These gifts are made by someone in order to remember someone else or honor them. It could be a loved one or someone close to them. They contribute in the individual’s name rather than their own to show love and respect. Often times this will include a message or recognition. They can also be a way of celebrating a birthday or commemorate a special occasion. Many people will ask friends and family to give to a nonprofit rather than receive gifts themselves making tribute donations an excellent source of income for your nonprofit.

Example: A family makes a $500 donation to a cancer research foundation in memory of a loved one who died of cancer.

5. Financial instruments

As the name implies, rather than receiving cash your charity would receive contributions of publicly traded securities or other financial assets like bonds or Mutual Funds. Again, this can include estate planning for the donor and allow them multiple tax benefits. Once your nonprofit receives the equities, they will need to be sold by a licensed dealer broker. Or your organization can hold the stock and not liquidate until you find it beneficial or necessary to do so.

Example: A donor transfers 50 shares of a tech company’s stock to a nonprofit to support their mission.

6. Crypto donations

A new way to move wealth on the internet, crypto currencies are quickly gaining attention and some people have made fortunes investing in them. In order to accept cryptocurrencies such as Bitcoin, Ethereum, and others your nonprofit will need to have a cryptocurrency wallet which is a secure way to accept and spend cryptocurrency.

Example: A tech savvy donor sends 0.5 Bitcoin to a nonprofit’s cryptocurrency wallet.

7. Physical property donations

These gifts include contributions of tangible assets like real estate, vehicles, or valuable items like signed memorabilia. These types of contributions can be handy if someone donates their collection of rare books to a nonprofit library, or a truck to an animal charity. Anything can be donated and even if your nonprofit doesn’t need the pysical items it receives, they can be sold for cash in order to still be useful to your cause.

Example: A donor gifts their old car to a nonprofit that helps provide transportation for underserved communities.

8. In-kind donations

These types of support are also labeled corporate sponsorships and often come in the form of non-monetary contributions of goods or services instead of cash. Think local community events like a charity golf tournament where the golf course donates it’s course for free to the charity for the day to help them raise money. Or the local sporting goods store donates sporting equipment to a local sports club. Usually the individual or company making the donation receives praise or advertising opportunities from the nonprofit to make it a win win for both parties.

Example: A bakery donates 100 pastries for a nonprofit’s fundraising event.

9. Matching donations

These contributions are matched by an employer or corporation to amplify an individual donor’s gift. This is a corporate initiative and does not effect the individual donor in any way unlike a workplace donation which is a bit different. The company will advertise they are supporting a nonprofit organization and let their staff know they will match whatever the staff are willing to donate. This can also include just wealthy people or even foundation or churches.

Example: A donor gives $100 to a nonprofit, and their employer matches the donation with another $100.

10. Workplace donations

Workplace donations are an excellent way for individuals to donate to your cause before they even get their check. Corporations and businesses work with your organization to accept contributions made through payroll deductions or workplace giving programs that are deposited to your charity's account. This makes it much easier for people to make a donation as the entire system is automated and overseen by the companies.

Example: An employee contributes $20 from each paycheck to a nonprofit via their company’s payroll system.

12. Event donations

The bread and butter of many charities, events can bring in a lot of donations when done well. collected during or in association with a specific fundraising event. This can include anything from dance fundraisers, online digital fundraising events or even raffles and Chinese gift baskets. Although events do take some planning, they’re an excellent source of funding for any sized charity and can really help create a community around your cause. And with platforms like Paybee, you can host in person, hybrid or completely virtual events with ease while making the donation collecting process super simple for your supporters.

Example: Attendees at a gala donate during a paddle-raise segment to support the hosting nonprofit.

13. Peer-to-peer donations

Peer-to-peer donations are a great way to give your supporters the power to raise donations for your charity typically by leveraging their personal networks. The easiest way to do this is to use a platform like Paybee so you can create a donation page for them that they share their own donation page with friends, family and colleagues. You can even include a recurring option and add them to your email list for further marketing. It’s a great way to add funds and get some new supporters that previously may not have been aware of your cause.

Example: A supporter runs a marathon and sets up a fundraising page to benefit a cancer research nonprofit, raising $2,000 from their network.

14. Crowdfunding donations

Crowdfunding websites can also be a great way to expand your reach and get some much needed funding. This fundraising method allows you to harness the website’s traffic in order to get eyeballs on your cause. And even if you don’t get the funding you anticipated, you may still be growing the awareness of your charity in a completely different way than traditional methods. These campaigns often have specific goals, a set timeline, and incentives for donors.

Example: A nonprofit creates a crowdfunding campaign on GoFundMe to raise $20,000 for disaster relief efforts after a hurricane. With contributions from over 500 donors, they meet their goal in two weeks.

Additional Types of Donations

These additional types of giving are often considered alternatives to the more straight forward way of receiving donations yet should be considered in order to give your charity the best possible chance of being fully funded.

1. Volunteer Time or Services

Don’t ever discount the commitment it takes to volunteer someone’s time to a noble cause. Not only is their time and perhaps even expertise a form of donating, but often it’s worth far more than just a one time donation. Just think of what a group of motivated individuals aligned to your cause can do to push your charity forward. This not only reduces operational costs, but passionate people often have passionate friends, friends that can someday also become supporters.

Example: An accountant volunteers to create a nonprofit’s financial annual report saving your organization thousands of dollars in professional fees.

2. Grants and Institutional Funding

These funding opportunities are often much harder to get, especially for smaller charities. But that doesn’t mean they’re not worth investing time and effort into. This type of financial support provided by private foundations, corporations, or government agencies, usually with specific requirements or conditions for its use. You’ll need to apply for funding through detailed proposals outlining your mission, project goals, and financial needs. These funds are often allocated for specific projects or programs and can be from federal or local government.

Example: A nonprofit focused on environmental conservation receives a $50,000 grant from a foundation to launch a reforestation program in their community.

3. Donor-Advised Funds (DAFs)

DAFs are charitable giving accounts established by donors to manage their philanthropic contributions. Donors receive an immediate tax benefit for the funds they add, but still retain the power to recommend how and when the funds are distributed over time by recommending grants to specific nonprofits at their discretion.. This is a big advantage for donors and charities as well. Many Donor-Advised Funds will continue with donations for years to come, or until the fund runs dry.

Example: A donor establishes a DAF with $100,000. Over the years, they recommend $10,000 annually to nonprofits focused on homelessness.

4. Fundraising Membership Fees

Many noprofits don’t realize, but donations structured as membership fees, where donors contribute regularly in exchange for benefits such as newsletters, exclusive content, or access to events is completely legal and tax deductible for the donor. Charities often encourage supporters to "join" their cause by paying dues or membership fees which helps sustain the organization while fostering a sense of community. While more typical in 501c7 type Social Clubs, the model can work for any organization.

Example: A wildlife nonprofit offers annual memberships for $50, including quarterly updates, access to members-only events, and a branded tote bag.

5. Donated Royalties or Intellectual Property

Donations don’t always need to be financial or physical, sometimes they can come in the form of royalties or intellectual property. Creators designate all or a portion of royalties from their work, or intellectual property is transferred to a nonprofit to generate revenue. This can include royalties on creative works like music, patents on drugs or inventions, or licenses on books.

Example: An author donates the royalties from their bestselling book to a literacy nonprofit, generating $10,000 annually for the organization.

6. Charity Registry Donations

This type of giving is a bit different than just getting someone to donate items for an auction event or similar. Rather, gifts are directed to a nonprofit in lieu of traditional presents for events like someone’s wedding, birthday, or even a holiday like Christmas. Donors request contributions to their chosen nonprofit instead of receiving physical gifts themselves, thus supporting their charity through the kindness of their personal networks. This can be in the form of a registry that actually sends the merchandise to the charity like blankets and clothes for a human trafficking charity, or the equivalent in cash for items they would have otherwise had purchased for them.

Example: A couple getting married sets up a registry where guests can donate to an addiction shelter in their honor, raising $5,000 for the cause.

Wrapping Up

With all the different ways someone can make a contribution, it would seem silly not to try and take advantage of as many opportunities as possible in order to fund your nonprofit. All it takes is a little planning and correct marketing to alert your supporters of the myriad of ways they can contribute to your cause. And while you shouldn’t spread your efforts too thinly, we do suggest diversifying your funding options as best as you can to be sure your organization stays financially healthy and prospers over time.