A Guide to Types of Donations to Nonprofits | CommonBond (2024)

When it comes to the types of donations one can make to a nonprofit, the possibilities are nearly endless. From providing your time and resources with in-kind donations to establishing a legacy donation after your death, CommonBond relies on the generosity and philanthropy of people like you to provide services for the nearly 13,000 people who count on us for stability and support. Through your donation, you help us succeed in our mission in providing help and housing to the most vulnerable individuals. Before learning more about the types of donations nonprofits accept, here’s a quick list of examples:

  • One-Time Donation
  • Recurring Gifts
  • Stock Donations
  • Planned Gifts
  • In-Kind Donations

One-Time Donation

The most common type of donation to nonprofits, one-time donations, occurs when someone gives a specific monetary amount to an organization once. Even if that person gives the same amount to the same organization several times throughout the year, because there isn’t a planned recurring schedule or written expectation of when and how the donation will be made, they are all considered one-time donations.

Recurring Gifts

When someone decides to commit to a consistent recurring schedule of donating, this is considered a recurring gift. One benefit of recurring gifts is that they help give the nonprofit an expectation of consistent, predictable cash flow which enables them to make forecasts into funding and scheduled payments throughout the year. Additionally, it might help the person donating by spreading their contribution out over time rather than in one lump sum. For example, you might not be able to donate $300 all at once, but you may be able to budget an extra $25 a month as a recurring gift.

A Guide to Types of Donations to Nonprofits | CommonBond (1)

Start Your Donation to CommonBond.

Donate Today!


Donate Stock

Another popular type of donations that nonprofits receive comes through stock. Did you know you can donate long-term appreciated securities such as stock, bonds and mutual funds? And it’s easier than it may seem. When you donate the stock itself—rather than selling or liquidating the security—not only do you remove a step in the process, but you won’t need to remove the long-term capital gains taxes paid from the overall sum. This increases your donation amount up to 37% more. To transfer stock, either you or your broker fills out the transfer authorization form, and that’s all there is to it.

Planned Gifts

It can be hard to think about what happens after we’re gone, but setting up a planned gift is a great way to ensure the charities you support are included in your arrangements. There are a number of ways you can use planned giving to build charitable giving into your life plans, even after death. Some can even help you lower your taxable income now! Consider planning ahead now and explore some of these ways for giving after life:

  • Bequest:
    • A specific bequest of money or property naming the nonprofit as a beneficiary
    • Residual bequest of the remainder of the estate after specific bequests
    • Contingent bequest in which the gift to the nonprofit occurs if the original beneficiaries die before the donor
  • Planned Gift:
  • Life Insurance:
    • The nonprofit can be named as the beneficiary of a new life insurance policy, which is revocable by the donor
    • The nonprofit can be named as the owner and beneficiary of a new life insurance policy, which is irrevocable
    • An existing life insurance policy can be changed to include the nonprofit as a beneficiary or to transfer ownership of the policy to the nonprofit.
  • Qualified Retirement Plan:
    • The nonprofit can be named as the beneficiary of a tax-deferred retirement plan, including IRA, 401(k), 403(b), Keogh, etc.

In-Kind Donations

Donations don’t need to be monetary to make an impact. For nonprofits, In-kind donations are a gift of goods, services, time, or expertise. When you provide an in-kind donation, you’re helping to alleviate some of the stress the nonprofit undergoes and allows them to use their financial resources in better ways. For example, when you donate your time and expertise, you’re allowing the nonprofit to put more money toward their mission instead of additional staff or contractors, help existing staff work more efficiently by taking on some of the load, and bring experience to the organization that might otherwise need to be outsourced. Gifts of goods, like laptops for homework centers or art supplies for seniors, keeps the nonprofit from spending funds on the things they need.

No matter your situation, there are many types of donations that can be made to the nonprofit of your choice. At CommonBond, we rely on the philanthropy of others to help us continue to provide valuable resources to nearly 13,000 individuals in Minnesota, Wisconsin, Iowa and South Dakota. For more information or to donate, check out our Donations page.

Donate Today!

A Guide to Types of Donations to Nonprofits | CommonBond (2024)

FAQs

What are the six types of donors? ›

This article will explore 6 different types of donors and highlight how each one can contribute to non-profit organizations.
  • #1 Prospective Donors. ...
  • #2 Mass Donors. ...
  • #3 Major Donors. ...
  • #4 Corporate Donors. ...
  • #5 Legacy Donors. ...
  • #6 Foundation Donors.

What are the 3 types of donors? ›

The four different types are: living donation, deceased donation, tissue donation and pediatric donation.
  • Living donation. ...
  • Deceased donation. ...
  • Tissue donation. ...
  • Pediatric donation. ...
  • The importance of all types of organ, eye and tissue donation.
Jul 28, 2021

How do you categorize donors? ›

Here are some donor categories you can use to organize your contacts:
  1. Email Solicitation.
  2. Social Media Campaigns.
  3. Snail Mail (Direct Mail)
  4. Major Gift Donors.
  5. In-Kind Donors.
  6. Small Gift Donors.
  7. Monthly Gifters.
  8. Annual Gifter.
Aug 30, 2016

What are the main 4 categories of fundraising? ›

4. Different types of fundraising
  • Capital investment. Capital campaigns are more than raising money to get a new building.
  • Crowdfunding. The digital giving marketplace is growing rapidly and can help you to raise much needed funds for your project.
  • Bid-writing skills. ...
  • Cultivating new donors. ...
  • Large donations and legacies.

What is the most common form of donation? ›

Whole Blood Donation – This is the shortest and most common type of donation. On average, this process takes between 30-45 minutes from beginning to end. Whole blood donation takes your red blood cells, plasma and platelets.

What is the best type of donation? ›

Whole Blood Donation

Whole blood is the most flexible type of donation. It can be transfused in its original form, or used to help multiple people when separated into its specific components of red cells, plasma and platelets.

What does donor Z9 mean? ›

Z9 and 9Z are the most common codes. Z9 indicates that a person has consented to any needed organs and tissues to be used for transplant only, while 9Z indicates that a person has consented for any needed organs and tissues be used for transplant and organ and tissue research.

How do I solicit donations for a non profit? ›

Multichannel fundraising is now the most common way to ask for donations. You can (and should!) ask for donations in a variety of ways, including in person, over the phone, through letters, with emails, via social media sites, on your website and online donation form, at events, and more!

What is the difference between a fundraiser and a donation? ›

Except that it's wrong to focus just on the dollars. Fundraising is about raising money however you can. Donor development is about building relationships with people who give because they believe in the work your nonprofit is doing. The deeper the relationship, the more they give.

What is the difference between a contribution and a donation? ›

The difference between donations and contributions is that donations are quantifiable gifts, such as money, given to a charity, and contributions are gifts that may or not be quantifiable, such as funds or even your time or talents, provided for a cause you want to support.

What are charitable categories? ›

  • Charitable Organizations. ...
  • Churches and Religious Organizations. ...
  • Private Foundations. ...
  • Political Organizations. ...
  • Other Nonprofits.
Jun 15, 2022

How are nonprofits categorized? ›

Technically under the IRS's 501(c) code, there are two main types of nonprofits: nonprofit organization (NPO) and not-for-profit organization (NFPO). NPO's serve the public via goods and services while a not-for-profit organization (NFPO) may serve just a group of members.

What are the elements of donation? ›

A donation has been said to have the following essential elements: 1) the reduction of the patrimony of the donor; 2 the increase in the patrimony of the donee; and 3) the intent to do an act of liberality or animus donandi.

How do you create a donor strategy? ›

9 Major Donor Fundraising Strategies Your Organization Should Implement
  1. Hire a major gifts officer and/or team. ...
  2. Perform prospect research. ...
  3. Start a major donor society. ...
  4. Cultivate major donors with direct mailings. ...
  5. Host events catered to major donor acquisition. ...
  6. Leverage the connections of your board.

What is the 80/20 rule in fundraising? ›

In fundraising, the Pareto Principle, or 80/20 rule, means focusing more of your effort and resources on the 20% of people who are most likely to give you 80% of your future revenue.

What are the 6 ways to raise funds for your organization? ›

11 Simple Ways of Effective Fundraising for Nonprofits
  • Create a donation page.
  • Offer the text-giving option.
  • Send out fundraising letters.
  • Launch a crowdfunding campaign.
  • Host a fundraising event.
  • Try peer-to-peer fundraising.
  • Enable recurring donations.
  • Ask for sponsorships.
Oct 4, 2022

What are the most successful types of fundraisers? ›

  • Sausage sizzle or BBQ fundraiser. ...
  • A movie night or an outdoor movie event. ...
  • A trivia night. ...
  • Food fundraiser. ...
  • Bake Sale. ...
  • Selling raffle tickets. ...
  • School fundraiser. Fundraising at school is another tried-and-tested way to raise money for an important cause! ...
  • Auction. An auction can be a very profitable way to fundraise.
Aug 25, 2022

What are the three main reasons people donate to nonprofits? ›

Some give because they want to help others. Some give because it's their family or religious tradition. Some want to make their community a better place.

What are altruistic donations? ›

Anonymous Donation involves living donors who are not related to or known by the recipient. This type of donation is also referred to as anonymous, or altruistic, non-directed living kidney donation.

What makes people more likely to donate? ›

People are willing to give more to a cause when they expect having to endure pain to raise money. In a series of five experiments, Christopher Olivola of Carnegie Mellon University found that the idea of suffering to advance a worthy cause makes people more willing to participate.

Which payment method is best when donating to a charity? ›

It's simple: donating by bank account is by far the least expensive method of payment in terms of fees to payment processors. This means that your nonprofit gets more from your donation, putting more of your contribution to work to fulfill its mission.

What is the rarest blood type? ›

What's the rarest blood type? AB negative is the rarest of the eight main blood types - just 1% of our donors have it. Despite being rare, demand for AB negative blood is low and we don't struggle to find donors with AB negative blood. However, some blood types are both rare and in demand.

What is a good percentage to donate? ›

Give at an average level

If you care about helping others but don't want to give more than average, you could aim to give what an average person gives. This can vary significantly by income level and country, but for many people this is roughly 2–6% of their income.

What is the dead donor rule? ›

The “Dead Donor Rule” (DDR) lies at the heart of current organ procurement policy. [10] It is not a legal statute; rather, it reflects the widely held belief that it is wrong to kill one person to save the life of another. On those grounds, an organ donor must already be dead before vital organs are removed.

Which organ Cannot be donated? ›

Tissues such as cornea, heart valves, skin, and bone can be donated in case of natural death but vital organs such as heart, liver, kidneys, intestines, lungs, and pancreas can be donated only in the case of 'brain death'.

What does donor T1 mean? ›

Giving for Life Donor Recognition - Thoracic Vertebrae (T1)

What do you say when asking for donations? ›

Dear [Donor Name], Today, I'm writing to ask you to support [cause]. By donating just [amount], you can [specific impact]. To donate, [specific action]. Thank you for joining [cause's] efforts during this [adjective] time—It's supporters like you that help us change the world every day.

How do nonprofits attract donors? ›

Stewarding the relationships you have with current and new donors can help you build a dedicated, loyal base of supporters.
  1. Go mobile. ...
  2. Launch branded campaigns. ...
  3. Use captivating photos. ...
  4. Be transparent with prospective donors. ...
  5. Draw attention to opportunities to give. ...
  6. Use a Secure Fundraising Method. ...
  7. Use donation tiers.
Mar 22, 2017

What can a 501c3 spend money on? ›

501c3 Donations

501c3 nonprofits must have charitable, religious, scientific, educational, literary purposes, or provide testing for public safety, foster national or international amateur sports, or prevent animal and child cruelty.

What should you not do in a fundraiser? ›

What should you not do in a fundraiser?
  • Not Building Relationships With Your Donors.
  • Failing to Measure Social Impact.
  • Not Choosing an All-in-One Online Fundraising System.
  • Forgetting to Answer The “Why”
  • Not Involving Supporters in Fundraising.

Does fundraising money count as income? ›

If the organizer's intent was to raise funds in exchange for goods and/or services, the raised funds are considered taxable business income by the IRS.

Can you write off time donated to a nonprofit? ›

The value of your time is never deductible as a charitable contribution. However, if the charity requires you to wear a special uniform when volunteering or you have to pay to park your car in a garage, these types of expenses can be applied to your charitable deduction for the year.

What types of donations are tax-deductible? ›

You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions. Generally, you may deduct up to 50 percent of your adjusted gross income, but 20 percent and 30 percent limitations apply in some cases.

Is a gift the same as a donation? ›

Charitable giving is traditionally termed as “donations,” whereas an increasing number of charity organizations have recently started to semantically frame charitable giving as “gifts.” Our research team analyzed the wording of charitable appeals that appeared on the solicitation pages of the 100 largest U.S. charities ...

What are the 3 Ts in philanthropy? ›

But are we the most generous with the three Ts of philanthropic giving: time, talent, and treasure? We are fortunate to be able to do what we do and are rewarded accordingly.

What are the 13 charitable purposes? ›

Thirteen charitable purposes recognised in English law
  • the prevention or relief of poverty;
  • the advancement of education;
  • the advancement of religion;
  • the advancement of health or the saving of lives;
  • the advancement of citizenship or community development;
  • the advancement of the arts, culture, heritage or science;

What are the 3 types of nonprofits? ›

There Are Three Main Types of Charitable Organizations

Most organizations are eligible to become one of the three main categories, including public charities, private foundations and private operating foundations.

What is a list of donors called? ›

1. What the Donor List Is and Isn't. Your list, or house list as it's sometimes called, is the list of names of people you can reach out to for support. It's your rolodex of partners.

How many types of blood donors are there? ›

There are actually more than 8 different blood types, some of which are not compatible with each other. Find out how your blood type can help hospital patients in need of a transfusion.

What are the types of blood donors? ›

The list below shows the percentage of donors with each blood type:
  • O positive: 35%
  • O negative: 13%
  • A positive: 30%
  • A negative: 8%
  • B positive: 8%
  • B negative: 2%
  • AB positive: 2%
  • AB negative: 1%

How many types of blood bank donors are there? ›

There are 3 types of blood donors: voluntary unpaid. family/replacement. paid.

Top Articles
Latest Posts
Article information

Author: Amb. Frankie Simonis

Last Updated:

Views: 6494

Rating: 4.6 / 5 (56 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Amb. Frankie Simonis

Birthday: 1998-02-19

Address: 64841 Delmar Isle, North Wiley, OR 74073

Phone: +17844167847676

Job: Forward IT Agent

Hobby: LARPing, Kitesurfing, Sewing, Digital arts, Sand art, Gardening, Dance

Introduction: My name is Amb. Frankie Simonis, I am a hilarious, enchanting, energetic, cooperative, innocent, cute, joyous person who loves writing and wants to share my knowledge and understanding with you.