News and Updates from the Family

Issue 16 | May 11, 2022

Best Practice (BP):

Best practices are specific, discrete ministry activities that measurably increase program scale, effectiveness, and/or efficiency, and can be replicated by other National Ministries. Best practices should be supported by evidence (data).

Raise Gift-in-Kind Funding to Support Your Ministry

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Raising gift-in-kind (GIK) funding can be an essential part of the effectiveness of a national ministry. GIK donations provide access to goods and services that may be unaffordable, or that allows the organization to use resources on something else.

Finding partners who can provide materials, facilities, services or transportation can ease the cost burden of prison ministry. Finding such partners also provides a benefit to them, as they get to partner in a work that fits their vision.

PFI’s signature prison programs – TPJ and STP – require a national ministry to raise part of its budget. GIK can be a program investment if it meets certain criteria.

Planning Considerations

  • Determine if procuring tangible goods/services will further the mission, purpose or objectives of the organization
  • Conduct a needs assessment – developing a list of goods/services that would help you attain your ministry goals.
  • Develop a list of potential donors (beginning locally) that could provide the goods/services.
  • Determine if space will be required to store donations.
  • Determine other related cost (e.g. shipping, customs, transport, storage cost) and who is covering these expenses.
  • Prepare communication pieces that introduce your ministry/program(s).
  • Contact potential GIK donors and ask for a meeting with them.
  • Develop a gift acceptance policy
    • Document which gifts will and will not be accepted.
    • State how to value GIK contributions at their fair value (i.e. base on quoted price for identical asset or observable market data like rent per square foot).
    • Explain how you will document GIK. Suggest recording the following:
      • Donation description
      • Date received
      • Valuation
      • Verifiable Source
      • Verification of receipt
      • Record of end-use
    • Document how GIK will be recorded and recognized.
  • Record GIK as a revenue (when received) and expense (when utilized) in financial reporting.
  • Conduct monitoring to determine whether the donations were used for what they were obtained for.
  • Conduct evaluation to determine if the donations helped your organization to accomplish its goals/mission.
  • Report back to donors on how the donations were utilized and who they helped.

Required Resources

1. Human Resources

  • Someone will need to lead the needs assessment.
  • Someone will need to lead the product selection process.
  • Someone will need to solicit the donations.
  • Someone will need to manage delivery (for tangible goods).
  • Someone will need to record donations in the financial system.
  • Someone will need to review the use of donations and report on it.

2. Collateral

  • “Get-to-know our organization” pieces.
  • Receipt template.
  • Thank you letter templates.
  • Monitoring and evaluation reporting templates.

3. Time

  • Time to conduct a needs assessment.
  • Time to determine what donations would meet those needs.
  • Time to initiate and maintain relationships with potential donors.
  • Time to manage the donation(s).
  • Time to write to/thank donors.
  • Time to review how the donations were used.
  • Time to report on donation use.

4. Space

  • You may need space to hold donations.

5. Cost

  • The cost varies.
  • Considerations include travel expenses, types of communication (email, phone, text), potential storage.

NM with Demonstrated Experience in this BP