Fundraising as Contracting: Why Nonprofits Accept In‐Kind Donations

ABSTRACT In‐kind (nonmonetary) donations are a popular form of philanthropy that have received much less scholarly attention than monetary gifts. This study documents the prevalence of types of in‐kind giving and associated organizational practices, then explores links between the perceptions of nonprofit managers, organizational practices, and prevalence of in‐kind gifts. Using phone survey data, we conduct a mixed‐method cross‐sectional analysis of 240 US nonprofit organizations. Findings indicate a wide variety of in‐kind donations and ways in which they are solicited. Charity managers ascribe a variety of motivations to donors for giving in‐kind, with more offering positive reasons (such as donors believing such donations are useful) than negative reasons (such as donor convenience). Using theoretical insights from contracting as a guide, we find that practices regarding in‐kind donations stem from monetary and nonmonetary (such as time or usefulness) considerations, though with differing effects depending on whether there are perceived challenges or opportunities.