Why Every Church Needs a Gifts Policy
Churches and charitable organizations share a common reality: both depend on the generosity of others to fund their mission and ministry. Because of this, every congregation needs a clear gift policy that outlines how gifts are received, reviewed, receipted, and—when necessary—refused or retired.
A well-crafted policy is not just about process. It is an expression of faithful stewardship—ensuring that every gift entrusted to the church is handled with integrity, transparency, and care.
What Does a Gift Policy Do?
A strong gift policy provides clarity and consistency by:
- Defining how gifts are received, recorded, and acknowledged
- Establishing clear receipting practices (including timely thank-yous)
- Identifying who is responsible at each step of the process
- Providing guidance for complex gifts (such as stocks, bonds, or real property)
- Creating a review process for restricted or unusual gifts
While churches may feel called to accept every gift offered, there are times when declining a gift is the most faithful decision.
Key questions to consider include:
- Does the gift align with the church’s mission and values?
- Are there restrictions that limit its usefulness?
- Does the source of the gift raise ethical concerns?
- Could accepting the gift create a conflict of interest or harm the church’s witness?
Having a Gift Review Committee or team in place allows the church to discern wisely and respond faithfully. This team:
- Evaluates gifts quickly and fairly
- Works with donors to clarify or refine gift conditions
- Helps ensure generosity serves both the giver and the congregation
We begin with the assumption that donors give in good faith. The role of the review team is to help that generosity take shape in ways that truly support the church’s mission.
Types of Gifts (and What to Consider)
Churches receive many types of gifts, including:
- Cash
- In-kind gifts
- Stocks and securities
- Real estate
- Estate (testamentary) gifts
- Grants or corporate contributions
For any non-cash gift, the first question should be:
Does the cost of accepting and converting this gift exceed its value?
Some gifts carry hidden costs—legal fees, appraisals, environmental risks, or ongoing maintenance. Without careful review, a generous gift can become a burden.
Best Practice: Handling Stock and Securities
When a church receives stock or other financial instruments, the key question is: hold or sell?
Best practice is to sell immediately, unless directed otherwise by the donor. This:
- Maximizes the donor’s tax benefit
- Minimizes risk for the church
- Simplifies stewardship and accounting
Designated vs. Undesignated Gifts
Faithful stewardship includes honoring donor intent.
- Designated gifts must be used as directed
- Undesignated gifts may be used according to the church’s mission and discernment
In some cases, undesignated gifts may be invested for long-term impact, especially through endowment or memorial funds.
Endowments and Long-Term Stewardship
Gift policies often work alongside endowment policies, helping congregations steward both present and future resources. Clear policies signal to donors that:
- Their gifts will be handled wisely
- Their legacy will be honored
- Their generosity will strengthen the church for years to come
When It’s Time to Retire a Gift
All tangible gifts have a lifespan. Over time, use, obsolescence, or changing ministry needs may render a gift no longer useful.
A faithful policy includes a process for retiring gifts, recognizing that stewardship includes knowing when something has fulfilled its purpose.
When a gift has been visible or meaningful in the life of the congregation, retirement should be handled with care, gratitude, and intention.
One congregation used the following liturgy when retiring an instrument that could no longer be repaired. This kind of practice honors both the gift and the giver:
One: We give thanks for the generosity of the saints
Many: Who have passed on to us the stories of our faith.
One: Who thought not only of their current moment in time
Many: But who dreamed about providing for the future, for those like us who would come after them.
One: We remember Elizabeth Knowles, her love for Christ and her belief in the power of music to lift the soul.
Many: We give thanks for her gift of this instrument and for the music it created to enrich worship for three generations who have sung praises to God in this space.
One: As with all things that are created, there is a limit to life and usefulness—a reminder that we, our possessions, and even the earth are finite, and that only God is infinite and goes on forever.
Many: We remember with gratitude the service this gift has provided, and the one who saw that we should have it for a time. We release it from its sacred service with joy and thanksgiving, and we pray that we, too, would look with hopeful eyes to the future and those who will follow us in the journey of faith.
All: Thanks be to God!
Honoring the Legacy of Past Gifts
Even when full donor information is unavailable, congregations can still honor past generosity. Practices such as preserving plaques, photographs, or artifacts help tell the story of generosity across generations.
Honoring past gifts sets the table for future generosity.
Practical Boundaries (and Why They Matter)
A strong gift acceptance policy should clarify that:
- The church is not required to store retired items indefinitely
- Gifts do not need to be returned unless previously agreed
- Donors do not need to be notified upon retirement unless specified
These boundaries allow generosity to remain a gift—not a burden.
Faithful Stewardship in Practice
A clear church gift policy is a vital tool for faithful stewardship. It protects the congregation, honors donors, and ensures that gifts are received and used in ways that reflect the church’s mission and values.
It also allows the church to receive generosity with clarity, confidence, and gratitude—free from unnecessary complications.
And practically speaking, it may also save you from accumulating one too many broken pianos, worn-out couches, or other well-intentioned but burdensome gifts.